HWA AG increases sales revenue and improves earnings significantly in first half of 2021

Affalterbach, 27 October 2021 – For HWA AG, the first half of 2021 was characterised by a recovery of its business activities after the company had been significantly impacted by the restrictions in connection with the coronavirus pandemic. In Motor Racing, the FIA Formula 2 and FIA Formula 3 racing series, along with the ABB FIA Formula E championship, took place almost in full. GT customer sports, which forms part of the Vehicles/Vehicle Components segment and is important for HWA AG, has been largely intact since the beginning of the year. Spare parts and service business saw a satisfactory development in the first half of the year. Production for the Mercedes M-AMG GT racing vehicles was also positive. However, the start of already planned development projects that had not yet been implemented in the first half of 2021 fell short of expectations. As a result, short-time work was temporarily increased again and used to a greater extent than at the start of the year. At the same time, there was a focus on continuing to implement HWA AG’s general cost-cutting programme, which was also reflected in the company’s key earnings figures in the first half of 2021.

In the first half of 2021, HWA AG increased its gross revenue from EUR 30.8 million to EUR 43 million. Sales revenue rose from EUR 29 million to EUR 41 million. EBIT improved significantly from EUR -3.3 million in the previous year to EUR -0.7 million. After interest and taxes, the loss amounted to EUR -1.4 million in the first half of 2021 as against EUR -3.7 million in the same period of the previous year.

In the Motor Racing business, the cooperation with Daimler AG in the area of the ABB FIA Formula E championship ended after Season 7 in September 2021 as planned. HWA AG ended its participation with the double world championship. The end of its participation will result in a significant decline in sales revenue in this area in 2022, although this is currently expected to be almost fully compensated by other business areas. With regard to costs, HWA AG has already taken countermeasures in this area, with the effect that there are no further negative effects on earnings here. The Formula 2 and Formula 3 seasons will also end in the second half of 2021. HWA has decided not to participate in Formula 2 or in Formula 3 any more next year. The associated effects for the company are minor.

For 2021 as a whole, HWA AG has forecast a return to profitability. The Management Board still anticipates slightly positive EBIT in the low single-digit millions. In addition, HWA AG still has the goal of starting new development projects in the second half of the year, and has so far succeeded in this with projects in Mercedes-AMG customer sports. Another notable field of activity is the development of an electric caravan together with Knaus Tabbert, which was successfully presented at the Caravan Salon in Düsseldorf in August 2021. The company is also working on a research project to develop a drive axle with zero emissions and zero particulate matter. Overall, HWA AG is recording a positive development in various different development projects, which are at an advanced stage. This includes projects in the traditional environment of conventional combustion engines as well as in the field of new technologies and in sustainability and electrification.

Contact

Investor Relations/Presse
HWA AG
Marc Schimmelpfennig
Benzstraße 8
71563 Affalterbach
Phone: + 49/ (0) 7144/ 8717- 279
Fax: + 49/ (0) 7144/ 8718- 111
ir@hwaag.com
www.hwaag.com

About HWA AG

HWA AG is an independent, 360 engineering specialist in the fields of automobile racing and high-performance cars. Formed in 1998 by Hans Werner Aufrecht, the company is based in Affalterbach (Germany) and employs around 300 highly-qualified members of staff. HWA AG offers all its products and services under the corporate slogan ENGINEERING SPEED: The company's objective is to develop the best possible high-quality solutions, in order to get its partners and customers to their destination quicker. The portfolio of services ranges from designing all vehicle components to assembling complete cars, together with the relevant logistics, after-sales and support services.