HWG AG FINISHED 2021 WITH A POSITIVE RESULT

Affalterbach, 20 April 2022 - HWA AG has achieved its goal of returning to profitability in 2021. After the company suffered considerably in 2020 due to the coronavirus pandemic, combined with a significant decline in sales as well as a clearly negative result, the picture turned positive last year. Overall, HWA AG achieved a turnover of 85.8 million euros in 2021 after 65.6 million euros in the previous year. EBIT was plus 1.2 million euros after a minus of 10.6 million euros in the previous year. After taxes and interest, in 2021 the Group achieved a profit of over 0.6 million euros. In the previous year, the loss was more than eleven million euros. The massive improvement on the earnings side is primarily also due to the effectiveness of the cost and efficiency programme, which was intensified in 2021. The previously negative operating cash flow of 2.5 million euros was reported positively in 2021 at just under 7 million euros. The equity capital rose from 18.1 to 19.1 million euros. The equity ratio in the Group was improved from over 26 to more than 32 percent.

2021, HWA AG benefited from a significant return in business volume in the Car/Car Components segment. Fortunately, the Vehicle/Vehicle Components segment was able to return to pre-pandemic levels, due in particular to the continued close partnership with Mercedes-AMG GmbH and its customer sports activities. The business was characterised by the continued production of the Mercedes-AMG GT3 and GT4. In addition, HWA AG won new projects in this segment; although some of these were postponed until 2022 due to supply chain difficulties. Overall, the Car/Car Components segment developed above the planning of the Executive Board. Activities in the motor racing segment were within the company's own expectations.

From a sporting point of view, HWA's involvement as an entry team for the Mercedes-EQ Formula E Team in the ABB FIA Formula E Championship was crowned with success. HWA was able to end season 7 of the ABB FIA Formula E Championship with the manufacturers' and drivers' world championship title. As planned, HWA AG's involvement as a Mercedes-EQ Formula E Team ended after the 2020/2021 season. Services will continue to be provided. However, only to a limited extent. In the FIA Formula 2 and FIA Formula 3, podium finishes were achieved in individual races. At the end of 2021, HWA AG's activities in these two racing series were completely discontinued. The relatively low business volume and the corresponding costs for maintaining this commitment were decisive for this decision.

The outlook for 2022 is positive so far. In the Vehicles/Vehicle Components segment, the company expects a further increase in turnover compared to the previous year. The automotive racing business segment will lose much of its importance in 2022. Due to the discontinuation of the ABB FIA Formula E Championship for HWA AG and the withdrawal from Formula 3 and Formula 2 activities, almost no services will be provided here in 2022. Accordingly, the sales volume will be significantly reduced. Nevertheless, HWA AG expects the Group's sales volume to remain at about the same level as in 2021. The Group's EBIT is expected to recover further this year and could amount to up to 2 million euros.

However, the forecast for 2022 is subject to the proviso that the global economic conditions do not significantly deteriorate in the further course of the year, especially with regard to the growing global risks for the economy as a result of the war in the Ukraine. Likewise, the uncertainties regarding the availability of raw materials and supply chains should not worsen significantly, which could have an impact on HWA AG's business if, for example, components required for production are not available at the required time or in the required quantity.

HWA AG will publish the audited annual and consolidated financial statements for 2021 in mid-May.

The capital increase announced on 24 February 2022 has now been successfully completed and entered in the commercial register. The share capital was increased by 599,191 new shares. The new share capital now amounts to 6,591,105.00 euros. The issue proceeds amounted to 4.55 million euros. Half of the new shares were subscribed by Aufrecht GmbH and half by Dörflinger Management & Beteiligungs GmbH ("DMB"). Aufrecht GmbH is represented by Hans Werner Aufrecht and DMB by Willibald Dörflinger. Both gentlemen are among the major shareholders of HWA AG and are also members of the company's Supervisory Board.

 

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.