Annual results 2024 Increase in EBITDA margin despite difficult market in Germany

Arbon, 3 March 2025 – In Arbonia's largest European markets, the construction industry was not yet able to recover noticeably in 2024. Instead, uncertainty persisted and the second half of 2024 in particular was weaker than expected in Germany, an important market for Arbonia: Building permits continued to decline and financing costs remained at a high level for a long time, with consumers only feeling the effects of the ECB's cuts after a delay. In some markets, the general conditions such as interest, energy and material costs have improved somewhat, but this has not yet led to a noticeable recovery in most markets.
Nevertheless, Arbonia is cautiously optimistic about the 2025 financial year.

The closing of the sale of the Climate division took place on 26 February 2025. The following presentation of the annual figures therefore focuses on the continuing operations, i.e. on the former Doors division, thus the new Arbonia.

• Revenue growth of 10.2% to CHF 556.3 million (previous year CHF 504.6 million)
• Currency and acquisition-adjusted revenue growth of -5.4% (previous year -8.2%)
• EBITDA including one-time effects: +107.8% from CHF 31.9 million to CHF 66.3 million
• EBITDA margin including one-time effects: from 6.3% to 11.9%
• The one-time effects¹ amounted to a total of CHF 24.6 million net, primarily from the sale of the Zelgstrasse site (CH)
• EBITDA without one-time effects: +22.1% from CHF 34.1 million to CHF 41.7 million
• EBITDA margin without one-time effects: from 6.8% to 7.5%
• Guidance 2025: revenue growth of 3 - 5% and an adj. EBITDA of approx. CHF 60 million.
• Proposal by the Board of Directors for a distribution of CHF 5.83 per share at the Annual General Meeting in April 2025

Arbonia (continuing operations) recorded revenue growth of 10.2 % to CHF 556.3 million in the 2024 financial year. This includes the acquisitions of the Spanish company Dimoldura, including Rozière in France, and the Czech company Lignis from the respective closing date. Without currency and acquisition effects (organic), however, a decline of -5.4% was recorded, resulting in an improvement on the previous year
(-8.2%). The decline is primarily due to a continued fall in volumes as a result of the ongoing decline in new residential construction activity combined with rising average labour costs and negative exchange rate effects.

The EBITDA (including one-time effects) increased by 107.8 % to CHF 66.3 million in the financial year. This corresponds to an increase in the EBITDA margin from 6.3 % to 11.9 %. In addition to the acquisitions, this includes a gain (one-time effect) of around CHF 29 million from the sale of the Zelgstrasse site in Arbon. This is offset by personnel adjustments, acquisition costs and expenses for the carve-out of the Kermi glass solution from Kermi GmbH (Climate Division) in Plattling. The net one-time effects amounted to CHF 24.6 million.

The EBITDA without one-time effects increased by 22.1 % to CHF 41.7 million, which corresponds to an increase in the EBITDA margin from 6.8 % to 7.5 %.
The EBIT including one-time effects amounted to CHF 16.9 million, compared to CHF -8.7 million in the same period of the previous year, which meant that the corresponding EBIT margin increased from -1.7 % to 3.0 %. The EBIT without one-time effects fell from CHF -6.5 million in the previous financial year to CHF -7.7 million, with the EBIT margin consequently falling from -1.3 % to -1.4 %.

The group result from continuing operations (without one-time effects) amounted to a total of CHF -18.6 million compared to CHF -12.4 million in the previous year; including one-time effects, the group result rose from CHF -14.1 million to CHF 2.7 million.

Cash flow and net debt
The cash flow from operating activities (including discontinued operations) amounted to a total of CHF 41.3 million, which corresponds to a reduction of CHF 59.7 million compared to 2023 (CHF 101.0 million). The cash flow from operating activities for continuing operations amounted to CHF 37.4 million, a decrease of CHF 15.3 million compared to the previous year (CHF 52.7 million). This is due to significantly higher income taxes paid (approx. 1/2 relates to taxes from 2023) and higher interest costs as a result of the increased financing requirements. Investments continued to decline compared to the previous year and amounted to CHF 50.2 million in 2024 (previous year: CHF 59.3 million). The free cash flow (FCF) (including discontinued operations) amounted to CHF -121.3 million after CHF 2.4 million in the 2023 financial year. For continuing operations, FCF amounted to CHF -101.1 million, which corresponds to a decrease of CHF 88.9 million compared to the previous year (CHF -12.2 million). The acquisitions of Dimoldura and Lignis are primarily responsible for this development.

The net debt at the end of 2024 amounted to CHF 357 million compared to CHF 209 million at the end of 2023. The increase of CHF 148 million is largely due to the acquisitions of Dimoldura and Lignis (CHF 135 million).

Participation in the proceeds from the sale of the Climate division and dividend for the 2024 financial year
The shareholders will participate in the proceeds from the sale of the Climate division at the Annual General Meeting on 25 April 2025: The previously announced nominal value reduction of CHF 4.00 and the dividend for 2023 of CHF 0.30 per share will be proposed to the Annual General Meeting for distribution. A dividend of CHF 0.33 per share for 2024 will also be proposed to the Annual General Meeting for distribution. In addition, the Board of Directors will propose an extraordinary dividend of CHF 1.20 to the Annual General Meeting at the Annual General Meeting to replace the announced share buyback programme.

Non-operating assets
A contract for the sale of the production site in Russia was concluded yesterday, 3 March 2025. The sale price amounts to just under EUR 14 million. The transaction will be closed following approval by the Swiss and Russian authorities.

In addition, Arbonia intends to sell its non-operational real estate for a mid-double-digit million amount over the next two years.

Change in Group Management
Following the completion of the sale of the Climate division, Arbonia's new structure consists of the former Doors Division with its Wood and Glass Solutions Business Units and a streamlined Group Management. The Group Management consists of the three members Claudius Moor as CEO, Uwe Schiller as CFO and Markus Hütt as COO and simultaneously responsible for the Glass Solutions Business Unit. The extended Group Management will consist of the following members: Stefan Fehler (Human Resources), Philippe König (Business Development), Sandro Sergio (Chief of Staff) and Fabienne Zürcher (Communication & Investor Relations).

Outlook
Arbonia is cautiously optimistic about the 2025 financial year. On the one hand, targeted measures have been taken in the door business in recent months to strengthen the business, so that the new Arbonia is much more robust than in the past. Examples include the acquisitions of Dimoldura and Lignis, which have reduced the company's dependence on Germany and at the same time opened up further attractive markets. In addition, the automation and digitalisation of Arbonia's plants are enabling higher productivity, efficiency and flexibility, with the number of employees remaining the same or decreasing due to the shortage of skilled workers.

On the other hand, the situation in Germany, which remains the largest market, is likely to remain tense, even though the renovation market should continue to recover and demand for new residential space remains high. The Swiss market is likely to grow slightly from its current good level. The markets in Eastern Europe and the Iberian Peninsula, which have become more important, are expected to recover from the crisis much sooner and continue to grow.

Looking beyond the current financial year, the new Arbonia has a positive outlook for the future, as important factors such as energy costs have also normalised. At the same time, Arbonia is also becoming less dependent on price trends by expanding its capacities for self-produced energy. However, if the next German government decides to take measures to promote new construction (of flats) or to strengthen the economy, a substantial recovery in the construction industry could occur much sooner. In addition, the strategic measures taken in recent years have created the basis for benefiting from an upturn from 2025 onwards. The focus is on consolidating existing markets, tapping into new sales channels and continuously optimising processes. These initiatives will enable the new Arbonia to strengthen its market position and achieve sustainable growth.

Despite the current uncertainties regarding the development of the construction industry and thus volumes, and assuming stable exchange rates (CHF/EUR) and a normal development of material costs, Arbonia expects revenue growth of 3 - 5% for the 2025 financial year compared to the pro forma revenue of CHF 604 million for the 2024 financial year. Revenue growth and identified cost savings in the low to mid-single-digit million range from corporate headquarters and energy costs will increase adjusted EBITDA to approx. CHF 60 million (excl. AFG RUS).

Arbonia will present its strategy and medium-term planning at the Capital Markets Day on 27 March 2025 at the Arbonia Next25 in-house exhibition in Erfurt.

Detailed reporting can be found in the ‘Letter to Shareholders’, ‘Doors Division’ and ‘Sustainability’ sections of the 2024 Annual Report, see www.arbonia.com/report2024.

Contact
Fabienne Zürcher
Head Corporate Communications & Investor Relations
T +41 71 447 45 54
fabienne.zuercher@arbonia.com