Zurich, 19 August 2024 – Ad hoc announcement pursuant to Art. 53 LR

Gurit (SIX Swiss Exchange: GURN) today reports unaudited net sales for the first half of 2024 of CHF 213.5 million, a decrease of -8.8% at constant exchange rates or -12.7% in reported CHF compared to the first half of 2023. Gurit achieved an adjusted operating profit of CHF 11.6 million with an adjusted operating profit margin of 5.4%. This corresponds to CHF 13.6 million or 5.6% in the first half of the previous year. After restructuring expenses, operating profit amounts to CHF 9.9 million with an operating profit margin of 4.6%.

There were no significant changes in the markets in which Gurit operates in the first half of 2024:
The wind market remains flat and subdued in the Western world in the short term, with positive news coming from strong improvements in permits and auctions in Germany, renewed interest in onshore wind in the UK and the IRA-induced restart of many manufacturing sites in the US. In China, wind power installations remain at high levels, still significantly lower than built capacity, resulting in ongoing price pressure on turbines, turbine components and materials. After some weakness at the beginning of the year, marine markets resumed growth and industrial markets continued to offer numerous opportunities.

In this context, Gurit continued its path:

• Adapting to customer demand, selecting only profitable opportunities and reducing costs in the wind market segments. It is noticeable that the structural profiles business is almost breaking even.
• Expand your technical skills in the maritime and industrial markets at our Canadian Corecell^TM location and with the successful integration of the newly acquired FX Composites in the USA.
• Debt relief for the company, net debt fell to CHF 63 million at the end of June.

Wind materials achieved net sales of CHF 141.0 million in the first half of 2024, a decrease of -7.6% at constant exchange rates compared to the first half of 2023. Short-term market issues remain as several OEMs need time to resolve quality issues and have stopped or reduced production until the causes are clear and inventories are reviewed. Most OEMs are below their annual forecast, so Gurit’s order intake in the wind sector remains subdued. Plant activity is flat year-on-year, higher in pultruded sheets with positive developments in India and slightly lower in core kits, but supported by the integrated core supply strategy as Gurit sources most of the pre-manufactured core materials in its own plants.

Manufacturing solutions recorded a similar level of sales as in the second half of 2023 at CHF 21.0 million. Nevertheless, this represents a decrease in net sales in the first half of 2024 of -27.0% at constant exchange rates compared to the previous year at CHF 30.7 million. Western OEMs decided to slow down the launch of new turbine platforms and extend the life of existing turbines, which has led to a postponement of orders when otherwise expected. By expanding our footprint to include blade mold building in Chennai, we have strengthened our local market presence in India while securing our position against Chinese competitors. Our local presence in India strengthens our ability to attract new global business by ensuring security of supply and mitigating geopolitical concerns.

Marine and Industry reported net sales of 51.5 million in the first half of 2024, a decrease of -1.9% at constant exchange rates compared to the previous half year. After some weakness at the beginning of the year, the marine markets resumed growth and the industrial markets continued to offer numerous opportunities. Overall, the marine and industrial business is developing as expected in 2024.

* Alternative GAAP measure: see page 18 in the half-year report

organization
On August 15, 2024, Gurit decided to close its structural profiles production site in Middelfart, Denmark. Production volumes will be gradually relocated to Gurit sites in Chennai, India and Tianjin, China. There, Gurit already has the Group’s entire offering for the wind market and can fully utilize its production capacities.
Gurit expects the relocation to be completed by July 2025 and that impairment charges, restructuring and relocation costs totaling approximately CHF 10 million will be incurred, mainly in the second half of 2024. Total expenditure is estimated at approximately CHF 6 million, of which less than CHF 1 million is expected to be incurred in 2024.

profitability
In the first half of 2024, Gurit achieved an adjusted operating profit margin of 5.4% and an operating profit margin of 4.6% including restructuring costs. In comparison, the adjusted operating profit margin in the first half of 2023 was 5.6% and 5.3% including restructuring costs. The margin decline is due to low tool activity.
Gurit successfully reduced net debt to CHF 63.4 million, compared to CHF 78.0 million in the first half of 2023.
The half-year result was negatively impacted by an unfavorable financial result, mainly due to the EUR/CHF exchange rate, increasing financing costs and unrecognized tax losses. In the first half of 2024, our earnings per share amounted to CHF -0.02, compared to CHF 1.54 in the same period last year.

Cash flow and balance sheet
Gurit generated net cash flow from operating activities of CHF 5.2 million in the first half of 2024, compared to CHF 12.5 million in the same period last year.
This decrease is due to lower profit in the first half of 2024. In addition, changes in working capital negatively impacted cash flow, mainly due to stronger sales in the second quarter, which resulted in higher accounts receivable and increased inventories.
Capital expenditure amounted to CHF 5.2 million in the first half of 2024, compared to CHF 5.5 million in the first half of the previous year. Significant investments were made in Chennai, India, to increase production capacity.

outlook
After an expected slow start to the year with low revenues in the first quarter, we reported a stronger second quarter driven by the ramp-up of new blades and higher demand in non-wind markets. Taking into account the latest customer forecasts for wind turbines for the remainder of the year, we expect full-year revenues to be at the lower end of our guidance of CHF 435-485 million and confirm the adjusted operating profit margin of 5-8%, assuming no further delays in orders for core materials and tooling for wind turbines.

Gurit expects to maintain a strong market-leading position with Western wind energy customers despite dynamic, volatile and uncertain market conditions and increasing competition from Chinese suppliers. In parallel, accelerated product substitution and improved technical capabilities will support profitable growth in the marine and industrial sectors. Gurit will continue to adapt its global presence and capacities and maintain its advantageous position in the supply chain.

Online publication of half-year results and online media/analyst conference
On Monday, August 19, 2024, Gurit Management will present the results of the 2024 Half-Year Report in a public Webcast at 09:00 CESTThe presentation will be held in English and is available at https://www.gurit.com/investors/reports. An archived version will be made available later at the same link.
The 2024 half-year report is available at the following link: https://www.gurit.com/investoren/berichte

Roadshow
On August 27, 2024, Gurit CEO Mitja Schulz and CFO Javier Perez-Freije will be available to investors as part of a roadshow at the UBS premises in Zurich, Talacker 24.

A Capital Markets Day will take place at a later date and not on October 9, 2024, as already announced in the press release of March 4, 2024.

About Gurit
The subsidiaries of Gurit Holding AG, Wattwil/Switzerland, (SIX Swiss Exchange: GURN) are specialized in the development and manufacture of advanced composite materials, composite tooling and core kit services. The product range includes structural core materials, structural profiles, prepregs, formulated products such as adhesives and resins, and structural composites. Gurit supplies global growth markets such as the wind turbine industry, shipbuilding, construction and many more. Gurit operates production facilities and offices in Australia, Canada, China, Denmark, Ecuador, India, Italy, Mexico, New Zealand, Poland, Spain, Switzerland, Turkey, the United Kingdom and the United States.
www.gurit.com

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Forward-looking statements:
To the extent that this announcement contains forward-looking statements, these are based on assumptions, plans and forecasts at the time of publication of this announcement. Forward-looking statements are always subject to uncertainty. Business and economic risks and developments, the behavior of competitors, political decisions and other factors may cause actual results to differ materially from the assumptions, plans and forecasts at the time of publication of this announcement. Gurit Holding AG therefore assumes no responsibility whatsoever with respect to forward-looking statements in this announcement.