Adhoc: Bystronic AG: Difficult conditions led to a significant decline in demand. One-off restructuring costs burdened the negative annual result

Bystronic AG / Key word(s): Annual ResultDifficult framework conditions led to a significant decline in demand. One-off restructuring costs burdened the negative annual result 27.02.2025 / 06:30 CET/CESTPublication of an ad hoc announcement pursuant to Art. 53 KRThe issuer is solely responsible for the content of this announcement.

• Declining order intake and net sales stabilized
• Operating result (EBIT) adjusted by CHF -47 million
• New organizational structure and restructuring with annual savings of over CHF 60 million and one-off costs of CHF 37 million.
• Dividend of CHF 4.00 per registered share A proposed

key figures million CHF	2024	2023	in %	in % kW 1
order intake	625.4	794.0	(21.2)	(18.6)
net sales	648.3	930.1	(30.3)	(28.1)
order backlog	239.2	252.9	(5.4)	(8.5)
adjusted operating result (EBIT)	(47.4)	54.4	> (100)	-
in % net sales	(7.3%)	5.8%	-
operating result (EBIT) 2	(84.0)	54.4	> (100)
annual result 2	(67.6)	41.9	> (100)	-
Earnings per registered share A in CHF	(32.67)	20:28	> (100)	-
operating free cash flow	1.2	34.0	-	-
Dividend per registered share A in CHF	4:00	12:00	-	-
Average full-time positions	3,268	3,573	(8.5)	-
1 at constant exchange rates 2 including restructuring and impairments

Zurich, February 27, 2025 - In the full year 2024, Bystronic was faced with economic uncertainty, a persistent economic weakness and internal challenges, particularly in the implementation of complete solutions. Sales declined significantly and costs could not be covered despite savings, which led to a loss. Since the cost reduction measures initiated at the beginning of the year proved to be insufficient, Bystronic launched a comprehensive action plan to sustainably increase profitability and optimize its positioning as a complete solutions provider. One-off costs of this restructuring also burdened the result.

Domenico Iacovelli, CEO of Bystronic since July 2024, says: " 2024 was marked by economic uncertainty and internal challenges. With the necessary restructuring and reorganization, we adapted to the new market reality and implemented significant changes as early as the fourth quarter. The motivation of our employees, our innovative strength and the positive effects of the transformation will strengthen Bystronic for the future."

incoming orders and sales

Bystronic recorded a 21% decline in order intake to CHF 625 million in 2024 (-19% at constant exchange rates). The market environment was challenging and the overall economic environment difficult. The decline in global production activity continued. Purchasing Managers' Indices (PMI) in the major industrial markets have been below the 50 mark since the fourth quarter of 2022, indicating a continued contraction in economic activity. Our customers acted accordingly cautiously. The challenges in project execution and customer satisfaction impacted the market position. Customers were more cautious about Bystronic's complete solutions, which had a negative impact on order intake.Bystronic achieved sales of CHF 648 million in 2024, a decline of 30% (-28% at constant exchange rates). However, the strong base effect must be taken into account: last year's sales were positively influenced by the high order backlog at the beginning of 2023.

operating result and annual result

At the operating result (EBIT) level, Bystronic recorded a loss of CHF 84 million (2023: profit of CHF 54 million). This is the result of overcapacity and a high proportion of fixed costs. Despite cost-cutting measures, the slump in sales could not be compensated and Bystronic was unable to report a positive operating result (EBIT). In order to sustainably increase profitability, Bystronic launched a restructuring in September 2024. EBIT includes restructuring expenses and impairments of CHF 37 million, which are attributable to this action plan and had an additional impact on the result. The adjusted operating result (EBIT) was CHF -47 million. Bystronic closed the 2024 financial year with an annual result of CHF -68 million (2023: CHF +42 million).

Operating free cash flow and equity ratio

Bystronic focused on optimizing net working capital and achieved a slightly positive operating free cash flow of CHF 1.2 million despite the negative annual result. Net working capital decreased by 36%, which is disproportionately high compared to sales. As of December 31, 2024, the equity ratio was 69.2% (compared to 71.3% on the previous year's reporting date) due to the reduced working capital.

dividend

The Board of Directors is proposing to the Annual General Meeting on April 22, 2025 the distribution of a dividend of CHF 4.00 for registered shares A and CHF 0.80 for registered shares B. A total of CHF 8 million will thus be distributed to shareholders. Despite the loss, this proposal reflects the Group's continued solid liquidity situation and is in line with the dividend policy. This provides for the distribution of one third to one half of the result, taking into account the liquidity situation and the future needs of the Group.

New organizational structure and restructuring

In September 2024, Bystronic decided on a comprehensive restructuring in order to position itself closer to customers and reduce the cost base. As part of the restructuring, the regional organizational structure was replaced by a divisional structure, which reduced the Group Management Board to four members. In addition to the already established service division, the competencies in the machine business, automation and software will be bundled in the Systems division in order to be able to serve customers better, strengthen the positioning as a total solution provider and respond more agilely to market needs. Other restructuring measures relate to the increased use of synergies. These include the merging of group functions and the consolidation of global operating structures. The optimization of the overhead structures and the adjustment of production capacities were largely communicated in the 2024 financial year and are now being implemented. At the site in Niederönz (Switzerland), 84 jobs were cut at the end of 2024. The closure of production for automation solutions in Italy will be largely completed by the end of the first quarter of 2025. The structural adjustments will lead to a reduction of around 600 full-time positions and annual savings of over CHF 60 million, with around CHF 40 million already making a positive contribution in 2025. These measures are intended to ensure profitability at all times across the entire economic cycle.

outlook

2025 will be a transition year for Bystronic. Bystronic expects the market environment to remain challenging and orders received in the first half of the year to be at the level of the last few quarters. From the third quarter, Bystronic expects to regain market share. This will be reflected in increasing sales in 2026. Due to the lower order backlog at the beginning of the year and the strength of the Swiss franc, Bystronic expects sales to decline slightly and to make another loss for the full year 2025. Overall, the Group expects a weak start to the year and an improvement over the course of the year. Thanks to its proven strategy, the new divisional organizational structure, an optimized cost structure and the intact structural growth drivers, Bystronic sees itself as solidly positioned for the future. Across economic cycles, Bystronic expects to achieve an average EBIT margin of 5-7%.

conference

CEO Domenico Iacovelli and CFO Beat Neukom will present the results today, February 27, 2025, at 11:00 a.m. CET at the Marriott Hotel in Zurich and during a conference call in English. The webcast is available here or under "Presentations" on our website: https://ir.bystronic.com/de/publikationen/praesentationen To dial in to the conference call:Switzerland / Europe: +41 58 310 50 00United Kingdom: +44 207 107 06 13United States: +1 631 570 56 13

appendix

The complete 2024 Annual Report is available for download on our website:

https://ir.bystronic.com/de/publications/financial reports

press release (PDF)

If you have any questions:

Chief Financial Officer Beat NeukomMobile +41 62 956 40 79

[email protected]

Media Relations Michael PrägerMobile +41 79 870 01

[email protected]

About Bystronic Bystronic (SIX: BYS) is a world-leading technology company in the field of sheet metal processing. The focus is on the automation of the entire material and data flow of the cutting and bending process chain. The intelligent networking of laser cutting systems and press brakes with innovative automation, software and service solutions is the key to the comprehensive digitalization of the sheet metal industry.

disclaimer

The press release is published in English and German. If the English translation differs from the German original, the wording of the German version applies. This announcement contains forward-looking statements that are subject to uncertainties and risks. Actual future results may differ materially from those presented or implied in these statements. These uncertainties and risks are related to factors that cannot be influenced or accurately predicted by Bystronic, such as future market conditions, currency fluctuations or the behavior of other market participants, suppliers and transport companies, as well as possible effects due to the war in Ukraine and related sanctions. Readers are cautioned not to place undue reliance on forward-looking statements, as they only relate to the date of this announcement. Bystronic disclaims any intention or obligation to update or revise forward-looking statements, whether as a result of new information, future events or other factors.End of ad hoc announcement