In 2014 UNIWHEELS continued to improve its financial results


•  The Group’s revenues increased by 7.5 % to EUR 362.6 million

•  Double-digit increase in earnings

•  Increase in all significant margins

•  Highest net profit in the Group’s history: EUR 22.8 million

Germany-based alloy wheels manufacturer UNIWHEELS presented its financial results for the financial year 2014. In 2014 UNIWHEELS Group sold 7.2 million wheels (an increase of 5.8% over the previous year).

The sales of wheels increased substantially both in the automotive industry segment, with supply of alloy wheels to the premium European automotive manufacturers, and in the accessory market segment with sales of wheels under own brands to worldwide dealers.

In 2014, the Group delivered approx. 5.8 million wheels to the OEM (Original Equipment Manufacturer) customers – renowned car manufacturers like Audi, BMW/MINI, Mercedes/AMG, Jaguar/Land Rover, PSA, Volvo and others and approx. 1.4 million of wheels to the aftermarket customers under the well-known own brands ATS, RIAL, ALUTEC and ANZIO.

UNIWHEELS generated EUR 362.6 million of revenues, an increase of 7.5% compared to 2013. The Group improved profits and all relevant margins in 2014. EBITDA increased to EUR 46.8 million (+22% compared to 2013), EBIT reached EUR 32.6 million (an increase of 8%) and net profit grew to EUR 22.8 million (+73% compared to 2013). EBITDA margin in 2014 improved by 1.3 percentage points to 12.6%, and EBIT margin improved by 1.8 percentage points to 8.8% compared to 2013.

“We are very satisfied with the 2014 sales and financial results. The Group’s performance in the last three years shows a constant increase of wheels sold – in 2012 it was 6.4 million, in 2013 6.9 million and in 2014 it increased to 7.2 million wheels.

Thus, we have continuously improved our strong position in the automotive market as a long standing technology and development partner of all major European premium car manufacturers”. – says Ralf Schmid, UNIWHEELS AG CEO.

“Positive trends in our sales continued in first months of 2015 – in January and February we sold 1.22 million wheels already, a 7.0% increase in sales compared to first two months of 2014 and we also feel comfortable with our current filled order pipeline for 2015” – he adds.

Key financial figures of UNIWHEELS Group:

(in € million unless otherwise stated, audited)     2014     2013     +/-

Revenue     362,6     337,2     +7,5%
Sales volume (million pieces)     7,2     6,9     +5.2%
Gross profit     146,7     128,3     +14%
EBITDA     46,8     38,3     +22%
EBITDA margin (% to sales)     12,6%     11,3%     +1,3PP
EBIT     32,6     23,6     +38%
EBIT margin (% to sales)     8,8%     7,0%     +1,8PP
Group consolidated profit (-loss)     22,8     13,2     +73%
Cash Flow from operating activities     23,8     19,6     +21%
Capital expenditures and investments     13,7     7,1     +93%
Return on equity     27,3%     15,5%
Net debt/EBITDA     1,9x     2,1x
Personnel (# persons)     2.366     2.141     +10%

The audited consolidated financial statements have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union (“IFRS”)

“Increase of key margins indicates significant improvement in profitability of UNIWHEELS Group.” – says Dr. Karsten Obenaus, UNIWHEELS AG CFO. “Gross profit improved due to quality and efficiency increase in the production process as well as a better product mix.

With stringent cost management, we also achieved significant improvements on the cost side, which are reflected in EBITDA and net income increase. It is worth mentioning that EBITDA has doubled over the two years period – from EUR 23 million in 2012 to EUR 46.8 million last year. Also in 2014 we reported the highest level of net profit in the Group’s history amounting to EUR 22.8 million” – stresses Dr. Obenaus.

“Thanks to sound financial management, the Net Debt-to-EBITDA improved to the factor of 1.9x in 2014, confirming the solid financial position of the company. Based on these factors, we plan further growth and are optimistic about the Group’s development in the current financial year”– adds Dr. Obenaus.

In 2014, the company increased investments as initially planned. Capital expenditures and investments almost doubled in comparison to 2013 and amounted to EUR 13.7 million. The main part of this expenditure involved development and productivity improvement measures in the production area in Polish and German factories.

As the investment process continues, UNIWHEELS AG recently announced its plans of further raising production in Poland by building a third factory there. This will expectedly from mid- 2016 gradually increase the capacity of the Polish factories by up to 2 million wheels. The availability of the full capacity is expected in 2018.

“We expect further growth and a positive development in 2015. The high levels of sales achieved in 2014 and in the first months of this year are the confirmation of our strong position in the European automotive market.

Based on the forecasts for the light vehicle production for the years 2014-2018 and the estimated growth of the market volume for OEM wheels, we expect to be able to further increase our output of wheels in 2015 compared to 2014. This is another reason why the upcoming implementation of the new capacity expansion in Stalowa Wola is a strong basis for the planned growth of the UNIWHEELS Group” – says Ralf Schmid.

UNIWHEELS Group is one of the leading manufacturers of alloy wheels in the European aftermarket (Accessory Division) and one of Europe’s largest wheel suppliers to the automotive industry (Automotive Division). UNIWHEELS Group also equips professional motorsport racing vehicle series with high-tech wheels. For more than 40 years, the Group has been producing high-quality aluminium wheels mainly using the low-pressure casting technique. Further manufacturing techniques used are flow forming, Lightforming® (advanced pressure rolling) and forging for ultra-light high-tech wheels.

With the global brands of ATS, RIAL, ALUTEC and ANZIO, UNIWHEELS possesses comprehensive knowledge in the accessories market and technical expertise as an original equipment manufacturer in the automotive industry. Furthermore, with its wide range of brands, the UNIWHEELS Group offers wheels for all target groups, from premium to economy.

Highly efficient production locations in Poland and Germany, as well as the pooled technological expertise of the group, form a secure base for further development of the brands and growth of the UNIWHEELS Group associated with this.

Two UNIWHEELS factories based in Stalowa Wola are responsible for approx. 83% of total Group production. In 2014 over 6 million wheels were sold from Poland-based factories. UNIWHEELS employs over 1800 employees in Poland. The Group´s German plant in Werdohl has approx. 370 employees and had an output of approx. 1.2 million high-end wheels sold in 2014.

In 2014, the UNIWHEELS Group had revenues of EUR 362,6 m, EBITDA of EUR 46.8 m and net income of EUR 22.8 m.

Legal disclaimer:

This document is not an offer of securities for sale in Australia, Canada, Japan or the United States. Securities may not be offered or sold in the United States absent registration under the U.S. Securities Act of 1933, as amended (the “Securities Act”) or an exemption from registration. The securities referred to herein have not been and will not be registered under the Securities Act. No public offering of the securities will be made in the United States.

Oliver Madsen

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