Disclosure of Inside Information pursuant to Article 17 MAR
Dec 03, 2024
Reassessment of Ongoing Negotiations with Mercedes-AMG GmbH Regarding the Sale of the Customer Racing Business Unit and Adjustment of Earnings Guidance
Affalterbach, December 3, 2024 – At its meeting today, the Management Board of HWA AG (“HWA” or the “Company”) (ISIN: DE000A0LR4P1; WKN: A0LR4P) reassessed the status of the ongoing negotiations with Mercedes-AMG GmbH regarding the sale of the Customer Racing business unit.
Whereas the objective had previously been the sale of the entire business unit, the Management Board will now continue negotiations without a predetermined outcome regarding the scope and timing of the transfer of individual business segments. Consequently, HWA will continue to operate the Mercedes-AMG Customer Racing business in its established form throughout the 2025 financial year and will generate the corresponding revenues and earnings from the Mercedes-AMG Customer Racing aftersales business. Whether this will also be the case beyond 2025 has not yet been determined.
Furthermore, based on the current business performance, the Management Board has adjusted the Company's outlook for the 2024 financial year. Due to the postponement of planned projects, it now expects a weaker earnings performance and anticipates a negative EBIT in the upper single-digit million euro range. Previously, a negative EBIT in the mid single-digit million euro range had been expected.
With regard to revenue for the 2024 financial year, the Management Board continues to expect that revenue will be lower than in the 2023 financial year.
In connection with the ongoing subscription offers for new shares and the WSV 2024/2026 notes, the Company will update the Securities Information Sheet published for the subscription offer of the new shares. The updated version will be published shortly on the Company’s website (https://www.hwaag.com/de/ir-disclaimer/ir.html) in the section “SUBSCRIPTION OFFER TO SHAREHOLDERS”.
The Company voluntarily grants all holders of subscription rights for the new shares and the WSV 2024/2026 notes who have already exercised their subscription rights a right of withdrawal. This right of withdrawal may be exercised by submitting a declaration to the respective custodian bank no later than December 5, 2024.
The terms and conditions of the subscription offers shall otherwise remain unchanged.
Contact:
Investor Relations
HWA AG
Marc Schimmelpfennig
Benzstraße 8
71563 Affalterbach
Germany
Phone: +49 (0) 7144 8717-279
Fax: +49 (0) 7144 8718-111
E-mail: ir@hwaag.com
Company Profile of HWA AG
HWA AG is an independent 360-degree engineering specialist in the fields of motorsport and high-performance vehicles. Founded in 1998 by Hans Werner Aufrecht, the company is headquartered in Affalterbach, Germany, and employs around 270 highly qualified professionals.
All products and services of HWA AG are guided by the principle ENGINEERING SPEED. The company’s mission is to develop the highest-quality and most effective solutions to help its partners and customers achieve their goals faster. HWA AG’s service portfolio ranges from the design and engineering of all vehicle components to the development and production of complete vehicles, complemented by logistics, aftersales and support services.