Adjustment to the latest published guidance for the consolidated financial statements

Lower sales expectations and negative one-off impacts, resulting from strategic portfolio management choices, lead to adjusted forecast corridor

Underlying performance of edding largest business units in line with expectations

With the announcement of the 2023 results, edding has shared the prognosis for 2024. Although the results of the main business units (Office & Industry Supplies and Creative & Home) are still expected to be largely within their corridors of the prognosis, a number of unforeseen negative effects has led edding to adjust the forecast corridor of Group sales revenues down to EUR 158.0 million to EUR 168.0 million (from EUR 161.0 million to EUR 176.0 million) and Group operating results according to IFRS (EBIT) to EUR 0.0 million to EUR 3.0 million (from EUR 3.0 million to EUR 6.0 million).

Sales revenues are expected to be significantly lower than plan in mainly the business unit Collaboration @ Work (“COWO”) and in edding France, although stable or slightly positive versus last year. This impacts the expected EBIT negatively by EUR 3.0 million.

The new prognosis corridors already take into account the separate disclosure of the result of the discontinued Business Unit Lifestyle (edding TATTOO) in accordance with IFRS 5; its EBIT impact is EUR -1.2 million (previous year: EUR -0,5 million). For more information we refer to our corporate news on today's half-year figures. Without this reclassification, the EBIT corridor would have had to be reduced to EUR -1.0 to 2.0 million.

The above-mentioned developments also impact the individual financial statements of the edding AG according to German Commercial Code (HGB); the net result of the mother company is now expected to be between EUR -1.5 million and EUR +0.5 million (before: EUR 0.0 million to EUR 2.0 million).

Although the 2024 results are now expected to be significantly below expectations of earlier this year, with a stable performance of the largest business units and positive future effects of strategic choices, edding deems that the mid-term financial BSC targets for 2026 are still achievable.

About edding AG: Founded in Hamburg in 1960, the company generated Group sales revenues of EUR 160.8 million in 2023 with an annual average of 726 employees. Under the edding, Legamaster and Playroom brands, the company offers long-lasting, high-quality products and solutions for private and commercial use. The portfolio includes markers and writing instruments, visual communication products such as flipcharts, whiteboards and e-screens and innovative digital applications. The company's fundamental values embrace responsibility towards the environment and society. edding wants to empower people to express their personality, ideas and thoughts and make them visible on a wide variety of surfaces.

Explanation of EBIT as an alternative performance indicator: EBIT is the abbreviation for “earnings before interest and taxes”. Total output less cost of materials, personnel expenses and depreciation and amortisation (including rights of use within the meaning of IFRS 16), plus other operating income and less other operating expenses. EBIT is the most important key figure for profitability management in the edding Group. No adjustment has been made for any extraordinary income or expenses with the exception of adjustments in accordance with IFRS 5, which are mandatory.

Ahrensburg, 31 July 2024

edding Aktiengesellschaft

The Management Board

____________________________