This is an ad hoc announcement pursuant to Article 53 of the Listing Rules (LR) of SIX Exchange Regulation AG

In the first half of 2024, Feintool generated sales of CHF 390.1 million and an operating result (EBIT) of CHF 0.2 million. The currently very challenging market environment in Europe is leading to low visibility, which is why Feintool is suspending its guidance for 2024 – as already communicated on July 17, 2024. The company is responding with the efficiency and growth program “Level-up 2026!”.

As a leading supplier of high-precision parts for the automotive and industrial sectors, the Feintool Group developed differently regionally in its various target markets in the first half of 2024.

Feintool achieved strong results in Asia and the USA: Sales in these regions were significantly higher than the same period last year at 11% and 16% respectively. In Europe, business with parts for combustion engines was generally in line with expectations.

However, the Group faced major challenges in its electrical sheet metal stamping business in Europe for a variety of reasons: political uncertainty with regard to electromobility (short-term cancellation of subsidies, particularly in Germany), a slowing economy, inflationary pressure and energy prices that are still high compared to international standards.

These negative effects led to a sharp decline in electric vehicle sales in some markets, while the industrial electric motor business recorded an unexpectedly sharp decline in sales. This led to overcapacity at car manufacturers, with the result that individual battery electric vehicle (BEV) programs were postponed, reduced in volume or even canceled.

In view of these challenges and the unfavorable conditions, Feintool has responded in two ways: firstly, with cost reductions and a restructuring program that envisages the relocation of high-volume production from Lyss (Switzerland) to other Feintool locations, primarily to the Czech site in Most. The second focus is a future concept to further expand the Group’s high level of expertise and thus increase innovative strength and competitiveness.

Expansion in Asia, investments in the USA
Feintool continued its success story in Asia in the first half of 2024. As an important supplier of high-precision parts in Asian automotive production, we want to consolidate our strategic position in the region and continue to grow there. Feintool is therefore expanding to India. Work on the new site in the Pune metropolitan region is progressing as planned. The groundbreaking ceremony is scheduled for the third quarter of 2024. The start of operations for the production of fineblanked parts for the subcontinent’s rapidly growing automotive industry is planned for the second half of 2025.

In the USA, the signs point to growth. In North America, Feintool is benefiting from investments in the Nashville site and a strong market position in fineblanking and forming. We also enjoy the trust of our US customers in Feintool’s innovative strength and competitiveness.

Outlook: Market position sustainably strengthened with agile portfolio
There is a global need to reduce CO₂ emissions and will operate in a climate-neutral manner in the future. The transformation in the automotive industry will progress accordingly. Feintool develops, builds and sells technologies for electric and hydrogen mobility. This makes us one of the world’s largest suppliers of main drives for electric cars and electric commercial vehicles. In addition, we supply our components to the markets for renewable energy generation from wind and hydropower as well as industrial electric drives, for example for pumps, machines and building technology.

Feintool is on track for the long term and expects a lifecycle volume of CHF 5.7 billion in the order backlog at the end of the first half of 2024. However, Feintool does not expect a significant improvement in the market situation in the second half of 2024. Visibility is currently still low, so no reliable forecasts can be made. For this reason, Feintool is suspending its guidance for 2024. The recently launched efficiency and growth program “Level-up 2026!” will sustainably improve profitability for 2026 in 2024 and 2025, so we continue to aim for an EBIT margin of over 6%.

About Feintool

Feintool is an international technology and market leader in electroplating, fineblanking and forming. We manufacture high-quality precision parts in large quantities from steel. We supply the automotive industry, energy infrastructure suppliers and all types of high-end industrial manufacturers. Feintool’s products perfectly complement the megatrends for the generation, storage and use of green energy.

Our core technologies ensure measurable cost efficiency, consistent quality and improved productivity. Feintool is constantly expanding the boundaries of its manufacturing methods and developing intelligent solutions, innovative tools and state-of-the-art manufacturing processes with a customer focus.

Founded in 1959 and headquartered in Switzerland, the company has 18 production sites in Europe, the USA, China, Japan and India with 3,200 employees and 85 trainees. Feintool is listed on the stock exchange and is majority owned by the Artemis Group.

Key figures at a glance

* including restructuring costs

Feintool International Holding AG

Industriering 8
3250 Lyss
Switzerland

Media spokesperson

Karin Labhart
Phone +41 32 387 51 57
Mobile +41 79 609 22 02
[email protected]
www.feintool.com