Aumann Ag Ord

Welcome to the earnings call ladies and gentlemen of the Aumann AG regarding the first half year figures for 2026. I'm delighted to welcome the CEO Sebastian Roll and CFO Jan-Henrik Pollitt, who will guide us through the presentation and the figures shortly, followed by a Q&A session via audio line and chat. And having said this, Sebastian, the stage is yours.

Thanks, so good afternoon everyone and thank you for joining us today. I'm very pleased to have you with us and for those I haven't met yet, my name is Sebastian Roll and I'm the CEO of Aumann and together with me today is our CFO, Jan-Henrik Pollitt. So we really appreciate your time and your continued interest in Aumann. So in the next few minutes, we will guide you through a brief overview of Aumann and the mixed market picture in the first half of 2026, the latest developments in e-mobility and Next Automation, including the progress we are making, especially in Next Automation. And of course, a look at our financial performance where Aumann delivered a solid first half of the year. So with that, let me start with a brief overview of our business model. So at the core of our business, we develop and build highly automated production lines for leading international customers. So our solutions are designed around the specific production needs of each customer combining many years of automation expertise. Historically, e-mobility has been Aumann's key strategic focus, where we provide automation solutions for applications such as electric power trains, battery system, and other electrified components. But our automation expertise goes well beyond the automotive industry. And this is becoming more and more important for Aumann. So the global automation market is supported by strong long-term trends such demographic change, labor shortages, and increasing cost pressure. With our next automation segment, we are using these opportunities to bring our technology and know-how into a broader range of industries. So this helps us to further diversify Aumann and take part in the long-term growth of the overall automation market. So let's take a closer look at Aumann's solutions portfolio. So our portfolio ranges from modular solutions to complex process solution and fully integrated large scale production solutions. This gives us the flexibility to support different customer needs and different levels of production complexity. So our modular solution offer a flexible and cost efficient starting point and can be adapted to changing market and production requirements. For more advanced manufacturing processes, we combine our core technologies such as winding, coating and testing to deliver integrated solutions. The goal is always to implement special process steps in the most efficient way. At the highest level, we bring together these technologies into complete turnkey production lines designed for high output efficiency and quality. This broad technology base is an important advantage for all. It allows us on the one hand to serve our established e-mobility customers, but also at the same time to apply our automation expertise in new applications and industries. And this is exactly what we are doing with Next Automation. So this slide shows how Aumann became a technology leader in e-mobility. Starting from the traditional automotive business, e-mobility was identified as a growth market. Through targeted M&A, Aumann took the first step into e-motor technologies. We developed different solutions for the rotor, quickly followed by solutions for the stator, and finally the full e-motor assembly. After the e-motor, we leveraged our expertise to develop large-scale production solutions for battery modules and packs. In addition, we introduced our own modular systems, for example, in inverter assembly, but also right now, very useful in the field of next automation. So furthermore, we have expanded into converting technology, enabling us to offer, for example, also production solutions for electrode manufacturers. To sum up, Aumann is a leading provider of turnkey solutions in e-mobility. And on this illustration, we show you the drivetrain of a fully electric car. And as you know, most of these components can be produced on Aumann production lines. From the outset, we have focused strongly on the e-drive unit. Here, we provide production solutions for different technologies. But our portfolio goes well beyond the eDrive unit. We also provide flexible and scalable solutions for electronic components, such as sensors and inverters, perfectly tailored to the needs of our customers. And the third major area is, as you know, the energy storage. Here Aumann covers the full range from battery modules, battery packs, to sell to X Solutions and even recycling solutions, which are upcoming right now. So this expertise allows us to meet customer needs and develop new solutions for next generation battery technologies. And importantly, once again, many of these technologies can be also applied to other industries. having a look on the e-mobility market today and in the future. So after a strong year already in 2025, the global death, so battery electric vehicle sales continued to grow also as you can see here in the first half of 2026, which means a plus of 9% in comparison to 2025. China remains the largest death market with 3.6 million, but recent growth has slowed. So the US market, which currently shows the lowest volume in comparison, is still challenging. But importantly for Orman, Europe is showing a very strong momentum, reaching 1.6 million units, which means an increase of 35% in comparison to last year. Germany is close to 50%. So going forward by 2030, BEFs are expected to make up roughly 40% of sales by 2035, even two thirds. So this means overall growing BEF sales are expected to drive new investments in the near future. In the meantime, this brings us to next automation. As mentioned, we are expanding beyond the automotive sector and focusing more industries that need greater efficiency, higher productivity, and less manual work. So in this context, we have moved our next automation segment to a very strategic approach as well. So today we are focusing on selected growth markets beyond automotive, such as aerospace, defense and life science. What these markets have in common is a growing need for automation. Let me give you some examples that our strategy is gaining traction. So a good example here is our development in aerospace. So as you know, aerospace is gaining momentum. So demand in civil aviation is rising. Boeing and Airbus are forecasting more than 40,000 new aircraft over the next 20 years. So against this backdrop, Aumanns secured first orders supporting civil aircraft production ramp. At the same time, defense budgets are boosting. So as you know, drones are our strategic focus in this area because drones combines exactly what we do best. electric motor, battery packs, and the full system integration, including, which is also very important, the end-of-line testing, just like in e-mobility, so means nearly same technology but new applications. So therefore, we easily developed integrated drone assembly lines and have already secured first orders for drone motor production and end of line testing. So besides aerospace and defense, cleantech is also a booming industry. And here Aumann wins orders for automated solar module disassembly solutions. and in the area of photovoltaic recycling and membrane manufacturing systems for fuel cell application, targeting, charging infrastructure and off-grid solution. and finally life science. So this sector benefits from long-term trends such as an aging population, strong investment levels and the attractive margin. So starting in the end of last year Aumann entered the pharma market with solutions for producing skin delivered patches and oral thin films. So, as you can see, there are ongoing developments all over these areas. Now, I would like to hand over to Jan.

Thank you very much, Sebastian, and also a warm welcome from my side. I would now like to share with you the financial figures for the first half of 2026. Let me begin by putting the first half of 2026 into perspective. Coming into the year, we anticipated that the challenging market environment would continue to weigh on our top line. Against this backdrop, maintaining operational discipline and protecting profitability were key priorities for us. We have made significant progress in improving our cost structure and operational efficiency over the recent month. The current results demonstrate that these measures are taking effect and that our organization is capable of delivering solid earnings even at significantly lower volumes. The market environment, particularly in automotive, nevertheless remains demanding. Investment decisions continue to take longer and both OEMs and suppliers remain cautious with their spending. We therefore do not see yet the broad-based recovery and automotive investment that we had initially hoped for. There are, however, clear signs of positive momentum in Next Automation. The segment is gaining traction with order intake and order backlog both developing favorably. Our expanded sales activities are increasingly converting into concrete customer opportunities and orders supporting the continued diversification of our business. Against this backdrop, the first half developed as follows. Revenue came in at 70.6 million Euro, 35% below previous year, while Next Automation increased revenue by 23%. Despite the lower volumes, EBITDA margin remained in double digits at 10.5%, underlining the resilience of our business. Order intake amounted to 65.4 million Euro, down 27% year over year. Order backlog stood at 115.4 million Euro at the end of June. At the same time, we continue to have a very strong financial position with a net cash of 154.4 million Euro. So while the market environment remains challenging, We are making tangible process in the areas we can influence ourselves. Operational efficiency, diversification, and our financial strength. Let me now take you through the key developments. Turning to the revenue development. Group revenue amounted 70.6 million Euro, down 35% compared with the prior year period. The decline was primarily attributed to the e-mobility segment, where the revenue fell 47% to 47.4 million euro, reflecting the ongoing weakness in the automotive investment environment. Next, automation by contrast continued to expand, increasing revenue by 23% to 23.2 million euro. Let me now turn to profitability and earnings, which provide further context on the quality of our performance. Looking at the earnings side, the lower revenue level was fully reflected in our absolute EBITDA while margins remained resilient. EBITDA amounted to 7.4 million Euro, down 35% year over year, broadly corresponding to the reduction in revenue. Nevertheless, the EBITDA margin held at a high 10.5% level, demonstrating the resilience of our operating model. The results also benefited from a strong project execution with several projects performing better than initially anticipated. Consequently, a number of risk provisions recognized at year end were no longer required during the first half, resulting in a positive impact of approximately 2 million Euro from the release of provisions within other operating income. With that, let me move on to the order intake and order backlog. The overall investment environment remains demanding, with automotive in particular still characterized by cautious spending and extended decision cycles. This continues to weigh on incoming orders. We are responding on two fronts, maintaining a disciplined cost and capacity structure while intensifying our diversification activities. In the first half, group order intake amounted to 65.4 million euro, a decline of 27% year over year. This picture is, however, significantly different within Next Automation. Order intake increased by 72% to €37.7 million, supported by the continued expansion of our sales activities. Our sales pipeline has also grown further, providing additional opportunities for future order intake and revenue growth. Group backlog stood at 115.4 million euro at the end of June, compared with 162.4 million euro a year earlier. Again, Next Automation stands out positively. Its order backlog increased by 32% to 61.9 million euro. Let me now take a closer look at the performance of our individual segments, starting with e-mobility. In the e-mobility segment, order intake of €27.7 million is 59% under the previous year due to the mentioned market conditions. As a result, order backlog decreased by 54% to €53.4 million. At the same time, revenue decreased by 47% to €47.4 million. EBITDA is declining due to volume to €5.9 million after six months, which means a strong margin of 12.3% after 11.9% in the previous year. In the next automation segment, order intake increased year-over-year by 72% to €37.7 million due to the new positioning. End of June 2026, order backlog amounted €61.9 million, an increase of 32%. Revenue stands at 23.2 million Euro, 23% above previous year. And EBITDA slightly increased to 2.7 million Euro, corresponding an EBITDA margin of 11.7%. Let me briefly turn to our financial position. At the end of June, Aumann continued to have a very strong balance sheet. with an equity ratio of 62.2% and cash of €158 million, including a net cash of €154 million. It is worth noting that the equity ratio already reflects the €23 million liability recognized in connection with our share buyback program, although the corresponding cash outflow took place in July. Our strong financial position gives us significant flexibility going forward. It allows to pursue attractive market opportunities, continue the expansion of Next Automation both organically and through M&A, and maintain our commitment to shareholder returns. This is also reflected in our share buyback program and our proposal to the AGM to distribute a total dividend of €1.11 per share. Let me close with our outlook for the full year. Based on the current order backlog and the continued expansion of the next automation sales pipeline, we confirm our 2026 guidance of approximately €160 million in revenue and an EBITDA margin of 6% to 8%. Sebastian, you're still muted.

Let me briefly summarize the key takeaways from the first half of 2026. First, immobilities. BEV sales on the one hand are growing, especially in Europe. However, our automotive customers are still a little bit cautious with new investments. So as a result, order intake, as you have seen, intake declined to 65 million viewers. So nevertheless, we expect this situation to change over time. As volume increases, investments have to come back in parallel. Nevertheless, in the meantime, we are making progress in next automation. As you have seen, order intake increased by more than 70% with a book to bill ratio of 1.6. This clearly confirms that our diversification strategy is working. Despite the lower business volume, we maintained a solid profitability with a double-digit EBITDA margin of 10.5%, so same level like last year. So for the full year 2026, we continue to expect revenue of around 160 million with a profitable EBITDA margin of 6 to 8%. And finally, Aumann remains in a very strong financial position with a high net liquidity and a solid equity ratio of more than 60%. And that clearly set us apart from most of our competitors. So this means our priorities in the remaining year are totally clear. to manage the current situation in e-mobility to accelerate the growth of Next Automation organically and through M&A and to use our strong financial position to create long-term value. So thank you very much for your attention and we are now happy to take your questions.

Thank you very much for your presentation. Ladies and gentlemen, we are moving on to the Q&A session. If you would like to ask your question in person via audio line, you can press on the raise your hand button. If you're dialing in by phone, please use the key combination star nine to raise your hand. And if you are not able to speak freely today, you can also place your questions in our chat box. And Amit Verma, you have placed some questions in the chat box and raised your hand. I would like to give you the opportunity to speak to us via audio line. Please unmute yourself. Sorry, your connection is not very good, Mr. Wermer. Therefore, I will read out your questions in the chat box. Q1. Please explain challenges faced in closing acquisitions. It has been nine months since we are looking for some.

Yeah, I mean, we would also like to move faster, but acquisition simply take time. We are seeing a good number of potential targets. roughly a handful, but each comes with their own specific topics that we also need to, yeah, need to assess carefully. So in some cases we have topic with financials, in others we have topic with operation, or also with order intake. So this is something where for us, and this was always our strategy that, Quality fit and strategic fit is more important than speed. And you know, we have done acquisitions in the past. I'm quite sure we will do acquisitions in the future. But yeah, we can totally understand your remark, because also we would like to be faster on this topic.

Thank you. and Kitu, why are we not seeing large orders from aerospace and life sciences? Are we also looking at America? These are very large markets and please explain our right to win against companies like ATS Corporation.

Yeah. So maybe starting with aerospace, I mean, the aerospace market is dominated by mainly two players, as you know. This is a market where you for sure have to convince the customers. You have to fulfill a lot of different topics just to be on the supplier list. So we are very happy that at least one of these big players is already committed on Alman and we are quite sure Jan-Henrik Pollitt, Sebastian Roll will also become, hopefully, orders step by step. But it takes time. Defense and aerospace is really hard to get in. But on the other side, if you are in such a market, it is, in our point of view, a very nice market.

Thank you very much. One question that you already illuminated. Could you give some color? What is the impact of traditional automotive on next automation segment? And please elaborate on M&A development. Is there any real project you're in advanced discussions? How many due diligence did the company in the last two years?

As I said, I mean, to give a flavor on this, I mean, we have always a handful of companies where we are in discussion, where we are offering, where we are doing due diligence from time to time and so on. But this is nothing new, honestly speaking. It's a little bit It's a little bit more focused right now in the way. And I think we mentioned this also in our last earnings call in the way that we are focusing on companies within the next automation. So this is something which has changed A little bit on this topic. Yeah, and the question, okay, as I said, I mean, what we try to do is to take our processes, to take our technology know-how and to transfer this technology know-how into next automation. So that means if there's something with a battery, if there's something where you have to produce an e-motor, or Light Structure, then this is something where for sure we can deliver a customized production solution and that's what we are doing within Next Automation.

Thank you very much and ladies and gentlemen, due to your questions you do have, we will extend the call for a few more minutes. to answer them all and I will be fast. The next questions coming from one person. First, based on H1 results, are you currently tracking towards the lower end, midpoint or upper end of the guided EBTA margin range 6% to 8%? Second question. Next, automation delivered a very strong 72% increase in order intake and new represents the majority of the group backlog. Could you provide more detail on the composition of the sales pipeline and specifically comment on the role of defense and drone-related application within further growth opportunities? And the third, given Aumann's net cash position of more than 150 million and your continued focus on expanding Next Automation, Could you provide an update on your M&A strategy? Are you currently evaluating acquisition opportunities in areas such as defense, aerospace, cleantech or life science?

Let's begin with a question concerning our guidance. You're right that we are currently in revenue a bit below guidance and margin a bit above guidance. As mentioned in the presentation, we have a good sales pipeline and a promising sales pipeline, especially in the next automation sector. So it's a bit too early to have a clear estimation on where exactly we will be with our guidance. So larger customer decisions will take place in the second half. And as soon as we have a clear visibility on these decisions, we will evaluate the guidance again. So for the M&A pipeline, I think we discussed the topics. So the next automation question was on details of the sales pipeline. So of course we cannot directly say or give details on the exact pipeline, but I think we have a broad pipeline during the several branches we discussed. So there is life science in the pipeline. There is drone and defense aviation business in the pipeline and also Thank you. You mentioned a strong volume uptick in Europe BEVs. When do you expect your customers to move and invest? Will you be able to keep your margins, even if volumes drop further?

Yeah, I mean, what we see right now is that we see within our battery business currently seeing the first upcoming large requests on this topic. And this is on the one end for modular impacts. because it seems that the decision on individual platforms and vehicle models are becoming more concrete. So this is one topic and hopefully it is clearly a sign of upcoming renewed momentum. But another topic which is a very new topic for us but very interesting is that we see now RFQs upcoming in the market of battery recycling and refurbishment. Why is it interesting? It's interesting because we are now talking about refurbishment of battery modules and battery packs. And we are not talking about, I don't know, 1,000, 2,000 packs a year. We are now talking of tens of thousands per year. And then it really is becoming interesting because then we are talking not only about manufacturing, we are talking about disassembly, reassembly of a line, We are talking about end-of-line testing. The idea of some car makers right now is to bring to the market also refurbished battery modules and battery packs. This is a very complex assembly line and for sure for such assembly lines and now I try to close the loop for such assembly lines it might be also possible at least to maintain the margin better.

And what are the lead times in next automation split by subsectors? Until when do you have to win projects to bring them into revenue? Still 2026.

Yeah, it's not really a question of the subsectors. It's a bit more a question of what kind of project it is, which is acquired. So totally new technologies have a bit longer lead times than well-established technologies in our group. But in general, we will be able to, when the project now is one The large buybacks of Aumann are executed at high prices vastly above market prices. This may benefit the largest shareholder MBB in receiving a good price of their share sales, but is not the interest of shareholder value for committed shareholders who do not tender.

Are you planning further large buybacks at excessive prices or do you foresee to make future in a way that serves shareholders?

Yeah, I think we positioned ourselves with an attractive dividend payment and an attractive share buyback program. So in general, all shareholders are equal in these decisions. And based on our 2025 earnings, especially in terms of profitability, we decided in this year where we are maybe a bit behind in order intake and the markets are a bit softer than initially expected, we wanted to keep the Aumann share attractive for our shareholders. and therefore we decided for both the share buyback program and the dividend payment and the decision in the end is at the shareholder which way is more suitable for the shareholders. Of course, we still see our share price evaluated at a bit over cash Thank you. What is the percentage of revenue in automation next coming from the automotive sector?

I mean, within the next automation, there's nearly nothing coming from the automotive sector because it's next automation.

Thank you very much. And one second. I have to translate a question because it came in in German. Will the entire order backlog as of June 30 of this year be recognized as revenue or is revenue from that backlog already planned for 2027?

A large part of the order backlog will be executed in 2026.

Thank you very much. We have one raised hand by Carlo Cattaneo Adorno. Carlo, here's You're allowing us to speak if you have some more questions for us.

Hello, thank you for taking my question. I know you've sort of answered this before, but I guess this is a bit more of a specific way to put this question to you. So we've been following the ACEA data, which shows the EV and hybrid registrations are growing pretty significantly. And as you said, in Germany, I think it's 50%. In Europe in general, it's about 30% year over year. And we can calculate that a lot of that growth is not going to foreign brands. So I guess my question is, we're just a little bit confused as to why this hasn't yet translated into increased orders. Is it because the manufacturers still have a lot of spare capacity for EVs and hybrids? In your view, are we close to the utilization levels that would trigger a new investment?

It's exactly the way you mentioned. Just having, as you know, one of our large customers is BMW. and the very attractive new class of BMW is ramping up just since, I don't know, some months but for sure the investment was one year before at least here for Aumann so that means the investment they have right now is The capacity in investment they have right now, they are using right now for the new class. The new class is very successful and there might be, for sure, there will be the time where they need additional capacity for these new class, but right now they are more or less fine.

Okay. And if I can ask a follow-up that is kind of related and I've sort of asked this before, we've talked about it before, but I'm seeing some more news stories about it. Theoretically, the restrictions on China's rare earth materials could increase demand for almonds winding technology by encouraging OEMs to adopt rare earth free designs. Are you seeing this translating into... Any specific projects or conversely, on the other side, is there any risk that the manufacturers are actually importing completed motors from China and not producing it locally?

No, it's exactly the topic you are mentioning. So what we see right now is a very interest in winded rotors instead of assembled rotors with rare materials. And this is exactly where we have one project in the past and where we think that we will see upcoming projects right now and we are in discussions. with some customers concerning exactly this topic and a rounded rotor in the past was more or less more for e-vehicles like I don't know smaller classes and now there's a discussion to put it also in the higher classes in the higher car classes so it's a very interesting topic which we are following right now as well. Okay, thank you very much.

Thank you, Carlo, for your questions. And ladies and gentlemen, I have time for one more question. Can you talk in more detail about the drone opportunity? Who are the customers? Are these smaller, newer companies or established defense companies? And how do you see this developing for Aumann in the coming years?

Yeah, customers are both. So very potent, very big startups on the one hand side and also established defense companies on the other side. So I think important to know is that we try to get a step in and our first step into this new area was to have at least or to offer end-of-line testing because even if they're manufacturing in a more manual way they need a very They need a very precise and offline testing. So this is something where we try to step in with a lot of different customers and then step by step having a look on the e-motor. So also here for sure, it's exactly what we have discussed just before. So the question, okay, has this e-motor be produced in Europe for sure if it is defense everybody wants to wants to produce these kind of motors on the long time or in the midterm in Europe so this is these are more or less than afterwards the discussions and in the end of the day we try to offer the full integrated Thank you very much and thank you also everyone for your extra time you took

We have come to the end of today's earnings call. Thank you very much for your interest in the Aumann AG. A big thank you also to Sebastian and Jan-Henrik for your presentation and your time. Should you have any further questions at a later date, ladies and gentlemen, please feel free to reach out to Investor Relations. I wish you all a successful day around the world. And having said this, Sebastian, the stage is yours for your closing remarks.

Yeah, let me close with just a few words. So while the automotive market remains challenging, we also see, and I think this becomes more clear in this call, opportunities ahead. So internally, we continuously optimizing our cost structure and our capacities for sure. But externally, we are building new sales opportunities, next automation. And I think this is something you have seen in this call is gaining momentum and we see Significant potential in this segment and we are confident that the results will follow and we look forward to seeing you at our upcoming annual general meeting. Thank you very much for your interest.