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Klöckner & Co SE reports strong earnings and cash flow in fiscal year 2022 despite challenging economic environment

Klöckner & Co SE reports strong earnings and cash flow in fiscal year 2022 despite challenging economic environment
09.03.2023 / 07:00 CET/CEST
The issuer is solely responsible for the content of this announcement.

Klöckner & Co SE reports strong earnings and cash flow in fiscal year 2022 despite challenging economic environment

Strong operating income (EBITDA) of €417 million before material special effects (2021: €848 million)
Exceptionally high operating cash flow of €405 million due to consistent net working capital management (2021: negative cash flow of €306 million)
Sales increased by 26% to €9.4 billion (2021: €7.4 billion)
Strengthened role as pioneer of a sustainable steel and metal industry with launch of Nexigen^® brand and expansion of related product and service portfolio
Leading position in North America extended with agreed acquisition of National Material of Mexico by Kloeckner Metals Corporation
Dividend of €0.40 per share (2021: €1.00) to be proposed to Annual General Meeting
EBITDA before material special effects in Q1 2023 expected to be very considerably higher than in the preceding quarter at €40 million to €90 million; positive outlook for fiscal year 2023

Duisburg, Germany, March 9, 2023 – Despite the challenging economic environment, Klöckner & Co generated strong operating income (EBITDA) of €417 million before material special effects in 2022 (2021: €848 million). Driven by higher average price levels, Group sales increased significantly year-on-year from €7.4 billion in 2021 to €9.4 billion. Based on the positive net income of €259 million (2021: €629 million) and earnings per share of €2.54 (2021: €6.21), Klöckner & Co will propose a dividend of €0.40 (2021: €1.00) per share to shareholders at the Annual General Meeting.

As forecast, consistent net working capital management and an actively enforced inventory reduction in the second half of 2022 resulted in an exceptionally positive cash flow from operating activities of €405 million (2021: negative cash flow of €306 million). The equity ratio increased over the prior year’s level to 51% at the end of the year (2021: 47%).

Guido Kerkhoff, CEO of Klöckner & Co SE: “Despite the challenging macroeconomic environment, we continued to successfully execute our corporate strategy in fiscal year 2022. We made significant progress toward our goal of becoming the leading one-stop shop for steel, other materials, equipment and processing services in Europe and the Americas. In addition, with Nexigen^® and the Product Carbon Footprint, we have further strengthened our role as pioneer of a sustainable steel industry.”

Further strengthening of role as sustainability pioneer

Klöckner & Co further expanded its range of sustainable products and services in the past year, thus strengthening its role as a pioneer in this regard. The Company brought together its CO₂-reduced products and services under the Nexigen^® brand launched in fiscal year 2022. This marked an important step in execution of the Group’s “Klöckner & Co 2025: Leveraging Strengths” strategy, in which sustainability plays a pivotal role as a strategic growth driver. With the new brand, the Company enables customers to reliably procure CO₂-reduced steel and metal products, providing them with full transparency about their CO₂-footprint. The past year saw Klöckner & Co already deliver the first quantities of CO₂-reduced steel to longstanding customers such as Mercedes-Benz and Siemens. Thanks to a partnership launched in 2022 with Outokumpu, the world’s leading supplier of sustainable stainless steel, Klöckner & Co now also supplies CO₂-reduced stainless steel in a further addition to the range of emission-reduced metals.

CO₂-categorization and Product Carbon Footprint for transparency on emissions

Combined with a comprehensive range of logistics solutions, circularity solutions and Sustainability Advisory Services (SAS), the Company supports customers in building sustainable value chains. To this end, Klöckner & Co further added to its CO₂-categorization offerings. From the beginning of 2023, in addition to the established five-category classification of CO₂-reduced steel, stainless steel and aluminum, customers can now have the individual Product Carbon Footprint (PCF) calculated for nearly all of the around 200,000 Klöckner products. The PCF reflects a product’s cumulative CO₂-emissions across the entire value chain, from resource extraction to production and delivery at the customer’s factory gate (“cradle to customer entry gate”) and is determined using the Nexigen^® PCF Algorithm, which has been certified by TÜV SÜD.

The Company’s wide-ranging sustainability activities have also been recognized by external sources. December 2022 saw Klöckner & Co win the German Sustainability Award 2023 in the Climate Transformation category. In addition, in April 2022, Klöckner & Co became the first company in the world to have all of its net zero carbon targets, including its decarbonization path, recognized as science-based in the standard validation process in accordance with the latest Science Based Targets initiative (SBTi) standards.

Expansion of product portfolio with acquisitions in North America and Europe

With the acquisition of National Material of Mexico (NMM) by the US subsidiary Kloeckner Metals Corporation (KMC) announced at the end of 2022, Klöckner & Co is strengthening its leading position in steel and metals distribution and the steel service business in North America. Customers stand to benefit from the transaction with improved access to steel, aluminum and stainless steel in Mexico. NMM and KMC notably complement each other in terms of regional coverage, customer segments and in view of NMM’s strong position in the automotive sector. In addition, the acquisition represents an attractive opportunity to enter the exclusive electrical steel market, which has considerable growth potential. Mexico is also highly attractive for KMC due to its proximity to the US and to the highly qualified local labor market. All of the world’s major automotive manufacturers produce in the country and the number of vehicles made there is expected to increase significantly in the future. As a combined player, Klöckner & Co will be ideally positioned to meet the resulting demand. The transaction is subject to the necessary antitrust approvals and is expected to close before summer 2023.

In addition, Klöckner & Co has further strengthened its partnership with US steel producer Nucor and is investing in a heavy plate processing plant on the site of the new Nucor steel mill in Brandenburg, Kentucky. Nucor Steel Brandenburg is a state-of-the-art electric steel mill where scrap is recycled into new heavy plate for offshore wind turbines and other infrastructure projects. With this investment, Klöckner & Co is driving ahead the development of sustainable, innovative and complex solutions for the entire supply chain and extending its portfolio of higher value-added services.

The Company has also made selective acquisitions to expand its product and service range in Europe. The acquisition of Hernandez Stainless GmbH and RSC Rostfrei Coil Center GmbH by the German subsidiary Becker Stahl-Service marked Klöckner & Co’s entry into stainless steel processing in a further addition to its product and service portfolio.

Focus on internal process digitalization

Klöckner & Co also continued to forge ahead in the strategic focus areas of digitalization and automation. In fiscal year 2022, the Company launched additional initiatives to streamline, harmonize and modernize the Group IT landscape. These initiatives lay the groundwork for further digitalization and automation of processes between sales and processing and enhance internal operational efficiency. By improving supply chain transparency, Klöckner & Co is also enhancing the shopping experience for customers, for example with real-time order tracking. This gives Klöckner & Co a competitive edge over smaller competitors. In order to continue developing innovative digital solutions in the future, the digital innovation hub kloeckner.i is to be tied in even more closely with the operating business and will intensify internal collaboration with other units.

Outlook

Although the economic environment remains challenging, the Company expects that the global steel market will increasingly normalize this year. A stronger demand trend in the Company’s key European and US markets is thus expected to bring a considerable increase in shipments compared to fiscal year 2022. Despite the rise in steel prices at the beginning of 2023, Klöckner & Co expects a lower price level overall compared to the prior-year period and correspondingly lower sales. Given the overall considerable improvement in the Company’s operational positioning, substance and profitability base, Klöckner & Co is targeting EBITDA before material special effects at a strong level, albeit below the prior-year figure, which was significantly positively impacted by price effects.

Due to a strong improvement in the macroeconomic environment, a positive price trend and very rigorous net working capital management, the Company expects that first-quarter EBITDA before material special effects will be very considerably higher than in the preceding quarter, at €40 million to €90 million.

About Klöckner & Co:

Klöckner & Co is one of the largest producer-independent distributors of steel and metal products and one of the leading steel service companies worldwide. Based on its distribution and service network of around 150 sites in 13 countries, Klöckner & Co supplies more than 90,000 customers. Currently, the Group has around 7,300 employees. Klöckner & Co had sales of some €9.4 billion in fiscal year 2022. With the expansion of its portfolio of CO₂-reduced materials, services and logistics options under the new Nexigen^® umbrella brand, the company is underscoring its role as a pioneer of a sustainable steel industry. At the same time, Klöckner & Co leads the way in the steel industry’s digital transformation and has set itself the target of digitalizing and largely automating its supply and service chain. In this way, the Company aims to develop into the leading one-stop shop for steel, other materials, equipment and processing services in Europe and the Americas.

The shares of Klöckner & Co SE are admitted to trading on the regulated market segment (Regulierter Markt) of the Frankfurt Stock Exchange (Frankfurter Wertpapierbörse) with further post-admission obligations (Prime Standard). Klöckner & Co shares are listed in the SDAX^® index of Deutsche Börse.

ISIN: DE000KC01000; WKN: KC0100; Common Code: 025808576.

Contact Klöckner & Co SE:

Press
Christian Pokropp – Press spokesman
Head of Corporate Communications | Head of Group HR
+49 203 307-2050

Investors
Felix Schmitz
Head of Investor Relations | Head of Strategic Sustainability
+49 203 307-2295

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Disclaimer
All transaction are carrying out by SiLLC, a private portfolio management assembly. This document is not an offer of securities for sale or investment advisory services. This document contains general information only and is not intended to represent general or specific investment advice. Past performance is not a reliable indicator of future results and targets are not guaranteed. Certain statements and forecasted data are based on current expectations, current market and economic conditions, estimates, projections, opinions and beliefs of SiLLC and/or its members. Due to various risks and uncertainties, actual results may differ materially from those reflected or contemplated in such forward-looking statements or in any of the case studies or forecasts. All references to SiLLC’s advisory activities relates to SiLLC Assembly International.

Ballard Reports Q4 2022 Results

VANCOUVER, BC, March 17, 2023 – Ballard Power Systems (NASDAQ: BLDP) (TSX: BLDP) today announced consolidated financial results for the fourth quarter ended December 31, 2022. All amounts are in U.S. dollars unless otherwise noted and have been prepared in accordance with International Financial Reporting Standards (IFRS).

“With an increasingly constructive policy landscape for hydrogen globally, we are excited by the growing end customer interest to decarbonize mobility and stationary power applications with fuel cells,” said Randy MacEwen, President and CEO. “2022 proved to be an important year for Ballard as we achieved key customer platform wins across our verticals of bus, truck, rail and marine, along with early traction in select stationary power applications. This dynamic is supporting our planned transition of Ballard’s business model to a heavier focus on growing sales of Power Products and reduced relative contribution of Technology Solutions. Bolstered by strong order intake in Q4 in Europe and North America, we ended 2022 with an Order Backlog of $133.4 million, with Power Products up more than double from the end of 2021 and up almost 60% from the end of Q3.”

“We are also excited with the measured progress we are making on our investments in strategic technology and product development programs and advanced manufacturing initiatives, underpinning our roadmap for continued product performance improvements while also achieving significant product cost reductions,” Mr. MacEwen added.

Mr. MacEwen continued, “In Q4, we delivered revenue of $20.5 million and gross margin of (29)%. On revenue, we continue to be disappointed with delayed adoption in the China market and low activity levels at the Weichai-Ballard JV, which weighed on our 2022 results. We are working closely with our Weichai-Ballard JV to unlock growth in the China fuel cell bus and truck markets. Gross margin results partly reflect strategic pricing on customer platform wins during a period of inflationary costs. We expect these dynamics to persist into 2024 until our volume ramps and our product cost reduction initiatives move into production. On costs, we achieved our guided targets for total operating expenses and capital expenditures for full year 2022. We ended the year with $913.7 million in cash reserves.”

Mr. MacEwen concluded, “In 2023, we believe we are well positioned to compete and grow in an increasingly exciting market. We continue to prudently manage our balance sheet as we execute on our planned investments in technology and products, advanced manufacturing, product cost reduction, our local-for-local manufacturing strategy, and providing an outstanding customer experience.”

Q4 2022 Financial Highlights
(all comparisons are to Q4 2021 unless otherwise noted)

Total revenue was $20.5 million in the quarter, down 44% year-over-year.
- Power Products revenue of $13.5 million decreased 49%, driven by lower shipments of fuel cell products.
  - Heavy-Duty revenues of $9.2 million decreased 59% due to lower shipments of fuel cell products in China and Europe.
  - Stationary Power Generation revenues of $2.7 million decreased 2%, due to lower sales in Europe, partially offset by increased sales in China.
  - Material Handling revenues of $1.6 million increased 23%, primarily as a result of higher shipments to Plug Power.
- Technology Solutions revenue of $7.0 million decreased 31% due primarily to decreased amounts earned on the Weichai Ballard JV and substantial completion of the Audi program.
Gross margin was (29)% in the quarter, a decrease of 42-points, driven by a combination of a greater weight of power products in the revenue mix, pricing strategy, increased investment in manufacturing capacity, increases in supply costs and inventory adjustments.
Total Operating Expenses and Cash Operating Costs³ were $37.0 million and $30.6 million, respectively, in the quarter, an increase of 15% and 15%, respectively. Increases were driven primarily by higher expenditure on research, technology and product development activities.
Adjusted EBITDA³ was ($46.4) million, compared to ($25.5) million in Q4 2021, primarily a result of the decrease in gross margin and increase in Cash Operating Costs.
Ballard received approximately $52.2 million of new orders in Q4, and delivered orders valued at $20.5 million, resulting in an Order Backlog of approximately $133.4 million at end-Q4. Order Backlog growth was driven predominantly by increased orders from Europe, which now represent approximately 64% of the total Order Backlog, compared to approximately 38% at end-Q4 2021. Specifically, the Power Products backlog as of Q4 2022 is more than double the amount in Q4 2021, and is up almost 60% from end-Q3 2022.
The 12-month Order Book was $57.3 million at end-Q4, an increase of $6.3 million from the end of Q3 2022. The 12-month Power Products Order Book increased by 37% as compared to end-Q4 2021 and by a similar percentage from the end of Q3 2022. Additionally, order intake in of $52.2 million in Q4 2022 was 124% higher than the 12 month average ending in Q3 2022 of $23.3 million.

Order Backlog ($M)	Order Backlog at End-Q3 2022	Orders Received in Q4 2022	Orders Delivered in Q4 2022	Order Backlog at End-Q4 2022
Total Fuel Cell Products & Services	$101.7	$52.2	$20.5	$133.4

2023 Outlook

Consistent with the Company’s past practice, and in view of the early stage of hydrogen fuel cell market development and adoption, we are not providing specific revenue or net income (loss) guidance for 2023. In 2023, we continue our plan to invest in the business ahead of the hydrogen growth curve. Ballard’s Total Operating Expense⁴ and Capital Expenditure⁵ guidance ranges for 2023 are as follows:

2023	Guidance
Total Operating Expense⁴	$135 – $155 million
Capital Expenditure⁵	$40 – $60 million

Q4 2022 Financial Summary

(Millions of U.S. dollars)	Three months ended December 31
	2022	2021	% Change
*REVENUE*
Fuel Cell Products & Services:^1,2
Heavy Duty Motive	$9.2	$22.5	(59) %
Material Handling	$1.6	$1.3	23 %
Stationary Power Generation	$2.7	$2.7	(2) %
Sub-Total	$13.5	$26.6	(49) %
Technology Solutions	$7.0	$10.1	(31) %
Total Fuel Cell Products & Services Revenue	$20.5	$36.7	(44) %
*PROFITABILITY*
Gross Margin $	($5.9)	$4.8	(224) %
Gross Margin %	(29) %	13 %	(42)pts
Operating Expenses	$37.0	$32.3	15 %
Cash Operating Costs³	$30.6	$26.6	15 %
Equity loss in JV & Associates	($6.8)	($4.9)	39 %
Adjusted EBITDA³	($46.4)	($25.5)	(82) %
Net Loss from continuing operations	($34.4)	($43.8)	21 %
Loss Per Share	($0.12)	($0.15)	(15) %
*CASH*
Cash provided by (used in) Operating Activities:
Cash Operating Loss	($27.1)	($23.5)	15 %
Working Capital Changes	$5.9	($7.1)	(183) %
Cash used in	($21.2)	($30.7)	-31 %
Operating Activities	($21.2)	($30.7)	-31 %
Cash Reserves	$913.7	$1,123.9	(19) %

(Millions of U.S. dollars)
	Twelve months ended December 31
	2022	2021	% Change
*REVENUE*
Fuel Cell Products & Services:^1,2
Heavy Duty Motive	$38.9	$51.7	(25) %
Material Handling	$6.4	$8.1	(22) %
Stationary Power Generation	$10.9	$8.2	33 %
Sub-Total	$56.2	$68.0	(17) %
Technology Solutions	$27.6	$36.5	(24) %
Total Fuel Cell Products & Services Revenue	$83.8	$104.5	(20) %
*PROFITABILITY*
Gross Margin $	($13.1)	$14.0	(193) %
Gross Margin %	(16) %	13 %	29pts
Operating Expenses	$145.8	$102.1	43 %
Cash Operating Costs³	$118.8	$83.8	42 %
Equity loss in JV & Associates	($11.6)	($16.1)	(28) %
Adjusted EBITDA³	($144.0)	($82.2)	(75) %
Net Loss from continuing operations	($173.5)	($114.4)	(52) %
Loss Per Share	($0.58)	($0.39)
*CASH*
Cash provided by (used in) Operating Activities:
Cash Operating Loss	($121.7)	($68.9)	77 %
Working Capital Changes	($10.4)	($11.6)	(10) %
Cash (used in	($132.2)	($80.5)	64 %
Operating Activities	($132.2)	($80.5)	64 %
Cash Reserves	$913.7	$1,123.9

For a more detailed discussion of Ballard Power Systems’ fourth quarter 2022 results, please see the company’s financial statements and management’s discussion & analysis, which are available at www.ballard.com/investors, www.sedar.com and www.sec.gov/edgar.shtml.

Conference Call

Ballard will hold a conference call on Friday, March 17, 2023 at 8:00 a.m. Pacific Time (11:00 a.m. Eastern Time) to review fourth quarter 2022 operating results. The live call can be accessed by dialing +1.604.638.5340. Alternatively, a live audio and webcast can be accessed through a link on Ballard’s homepage (www.ballard.com). Following the call, the audio webcast and presentation materials will be archived in the ‘Earnings, Interviews & Presentations’ area of the ‘Investors’ section of Ballard’s website (www.ballard.com/investors).

About Ballard Power Systems

Ballard Power Systems’ (NASDAQ: BLDP; TSX: BLDP) vision is to deliver fuel cell power for a sustainable planet. Ballard zero-emission PEM fuel cells are enabling electrification of mobility, including buses, commercial trucks, trains, marine vessels, and stationary power. To learn more about Ballard, please visit www.ballard.com.

Important Cautions Regarding Forward-Looking Statements

This release contains forward-looking statements concerning the hydrogen economy and markets for our products and the effects of governmental regulations on such markets, expected revenues, operating expenses, capital expenditures, corporate development activities, impacts of investments in manufacturing and R&D capabilities and market growth, and our carbon emissions goals. These forward-looking statements reflect Ballard’s current expectations as contemplated under section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Any such statements are based on Ballard’s assumptions relating to its financial forecasts and expectations regarding its product development efforts, manufacturing capacity, and market demand. For a detailed discussion of the factors and assumptions that these statements are based upon, and factors that could cause our actual results or outcomes to differ materially, please refer to Ballard’s most recent management discussion & analysis. Other risks and uncertainties that may cause Ballard’s actual results to be materially different include general economic and regulatory changes, detrimental reliance on third parties, successfully achieving our business plans and achieving and sustaining profitability. For a detailed discussion of these and other risk factors that could affect Ballard’s future performance, please refer to Ballard’s most recent Annual Information Form. These forward-looking statements are provided to enable external stakeholders to understand Ballard’s expectations as at the date of this release and may not be appropriate for other purposes. Readers should not place undue reliance on these statements and Ballard assumes no obligation to update or release any revisions to them, other than as required under applicable legislation.

Further Information

Kate Charlton +1.604.453.3939, or

Endnotes

¹We report our results in the single operating segment of Fuel Cell Products and Services. Our Fuel Cell Products and Services segment consists of the sale
and service of PEM fuel cell products for our power product markets of Heavy Duty Motive (consisting of bus, truck, rail and marine applications), Material
Handling and Stationary Power Generation, as well as the delivery of Technology Solutions, including engineering services, technology transfer and the
license and sale of our extensive intellectual property portfolio and fundamental knowledge for a variety of fuel cell applications.

² The UAV market has been classified as a discontinued operation in our third quarter of 2020 consolidated condensed financial statements. As such, the
assets of the UAV market have been classified as assets held for sale as of September 30, 2020. Furthermore, the historic operating results of the UAV
market for 2020 have been removed from continuing operating results and are instead presented separately in the statement of comprehensive income as
income from discontinued operations.

³ Note that Cash Operating Costs, EBITDA, and Adjusted EBITDA are non-GAAP measures. Non-GAAP measures do not have any standardized meaning
prescribed by GAAP and therefore are unlikely to be comparable to similar measures presented by other companies. Ballard believes that Cash Operating
Costs, EBITDA, and Adjusted EBITDA assist investors in assessing Ballard’s operating performance. These measures should be used in addition to, and not as a
substitute for, net income (loss), cash flows and other measures of financial performance and liquidity reported in accordance with GAAP. For a reconciliation
of Cash Operating Costs, EBITDA, and Adjusted EBITDA to the Consolidated Financial Statements, please refer to the tables below.

Cash Operating Costs measures operating expenses excluding stock-based compensation expense, depreciation and amortization, impairment losses or
recoveries on trade receivables, restructuring charges, acquisition related costs, the impact of unrealized gains or losses on foreign exchange contracts, and
financing charges. EBITDA measures net loss from continuing operations excluding finance expense, income taxes, depreciation of property, plant and
equipment, and amortization of intangible assets. Adjusted EBITDA adjusts EBITDA for stock-based compensation expense, transactional gains and losses,
acquisition related costs, finance and other income, recovery on settlement of contingent consideration, asset impairment charges, and the impact of
unrealized gains or losses on foreign exchange contracts.

⁴ Total Operating Expenses refer to the measure reported in accordance with IFRS.

⁵ Capital Expenditure is defined as Additions to property, plant and equipment and Investment in other intangible assets as disclosed in the
Consolidated Statements of Cash Flows

Operating Expenses and Cash Operating Costs

(Expressed in thousands of U.S. dollars)	Three months ended December 31,
			2022		2021		$ Change		% Change
Research and Product Development		$ 22,944		$ 19,870		$ 3,074		15 %
General and Administrative		5,561		7,420		(1,859)		(25 %)
Sales and Marketing		3,381		3,417		(36)		(1 %)
Operating Expenses		$ 31,886		$ 30,707		$ 1,179		4 %

Research and Product Development (cash operating cost)		$ 21,526		$ 17,153		$ 4,373		25 %
General and Administrative (cash operating cost)		5,921		6,408		(487)		(8 %)
Sales and Marketing (cash operating cost)		3,163		3,043		120		4 %
Cash Operating Costs		$ 30,610		$ 26,604		$ 4,006		15 %

(Expressed in thousands of U.S. dollars)	Three months ended December 31,
EBITDA and Adjusted EBITDA		2022	2021	$ Change
Net loss from continuing operations		$ (34,427)	$ (43,836)	$ 9,409
Depreciation and amortization		2,828	3,272	(444)
Finance expense		300	313	(13)
Income taxes (recovery)		(3,004)	(233)	(2,771)
EBITDA		$ (34,303)	$ (40,484)	$ 6,181
Stock-based compensation expense		1,471	2,319	(848)
Acquisition related costs		106	1,580	(1,474)
Finance and other (income) loss		(15,731)	11,366	(27,097)
Recovery on settlement of contingent consideration		(9,891)	–	(9,891)
Impairment loss on intangible assets		13,024	–	13,024
Impact of unrealized (gains) losses on foreign exchange contracts		(1,057)	(263)	(794)
Adjusted EBITDA		$ (46,381)	$ (25,482)	$ (12,899)

Operating Expenses and Cash Operating Costs
(Expressed in thousands of U.S. dollars)	Year ended December 31,
			2022		2021		$ Change		% Change
Research and Product Development		$ 95,952		$ 62,162		$ 33,790		54 %
General and Administrative		28,754		24,725		4,029		16 %
Sales and Marketing		12,851		12,904		(53)		(0 %)
Operating Expenses		$ 137,557		$ 99,791		$ 37,766		38 %

Research and Product Development (cash operating cost)		$ 84,048		$ 52,539		$ 31,509		60 %
General and Administrative (cash operating cost)		23,137		19,754		3,383		17 %
Sales and Marketing (cash operating cost)		11,582		11,489		93		1 %
Cash Operating Costs		$ 118,767		$ 83,782		$ 34,985		42 %

(Expressed in thousands of U.S. dollars)	Year ended December 31,
EBITDA and Adjusted EBITDA		2022	2021	$ Change
Net loss from continuing operations		$ (173,494)	$ (114,397)	$ (59,097)
Depreciation and amortization		13,357	9,752	3,605
Finance expense		1,279	1,294	(15)
Income taxes (recovery)		(3,536)	(216)	(3,320)
EBITDA		$ (162,394)	$ (103,567)	$ (58,827)
Stock-based compensation expense		9,408	9,669	(261)
Acquisition related costs		2,857	2,115	742
Finance and other (income) loss		2,102	8,813	(6,711)
Recovery on settlement of contingent consideration		(9,891)	–	(9,891)
Impairment loss on intangible assets		13,024	263	12,761
Impact of unrealized (gains) losses on foreign exchange contracts		862	519	343
Adjusted EBITDA		$ (144,032)	$ (82,188)	$ (61,844)

SOURCE Ballard Power Systems Inc.

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Consolidated financial statements, higher forecast for 2022, forecast for 2023 and dividend proposal

Consolidated financial statements, higher forecast for 2022, forecast for 2023 and dividend proposal

April 25, 2022 Deutsche Rohstoff AG today published the final consolidated financial statements for 2021. In this context, the company raises the forecast for fiscal year 2022.

Group earnings in 2021 EUR 5.32 per share/EBITDA-Forecast 2022 raised to EUR 110-120 million/Dividend 60 Cents

Mannheim. Deutsche Rohstoff AG today published the final consolidated financial statements for 2021. In this context, the company raises the forecast for fiscal year 2022 as follows:

Base scenario 2022:

Group sales: EUR 130 to 140 million (previously EUR 126 to 134 million)

EBITDA: EUR 110 to 120 million (previously EUR 97 to 102 million)

This base scenario is based on an oil price of USD 85/barrel, a gas price of USD 4/MMbtu and a EUR/USD exchange rate of 1.12 for the remainder of 2022.

For the fiscal year 2023, the Executive Board expects the following figures for sales and earnings in the base scenario (oil price USD 75/barrel, gas price USD 4/MMbtu; EUR/USD 1.12):

Base scenario 2023:

Group sales: EUR 125 to 135 million

EBITDA: EUR 100 to 110 million

The company’s management report published today also includes a scenario with an oil price of 92 USD/barrel for the rest of 2022 and an oil price of 85 USD/barrel for 2023, assuming the same gas price and EUR/USD exchange rate. It leads to the following forecast:

Increased price scenario 2022:

Sales: 140 to 150 million EUR

EBITDA: 120 to 130 million EUR

Increased price scenario 2023:

Group revenue 2023: 140 to 150 million EUR

EBITDA 2023: EUR 115 to 125 million

The Executive Board expects to be able to achieve a clearly positive consolidated result in both years.

The Executive Board and Supervisory Board will also propose to the Annual General Meeting, which will be held as a virtual Annual General Meeting on 28 June 2022, to distribute a dividend of 60 cents per share for the fiscal year 2021. Shareholders will be offered the opportunity to receive the dividend in the form of new shares.

The consolidated financial statements can be accessed here in German as of today (an English Version of the Annual Report will follow shortly).

For the definition of EBITDA, please refer to the Deutsche Rohstoff AG website at https://rohstoff.de/en/apm/.

Explanatory notes

The Deutsche Rohstoff Group achieved sales of EUR 73.3 million (previous year: EUR 38.7 million), EBITDA of EUR 66.1 million (previous year: EUR 23.9 million) and consolidated net income of EUR 26.4 million (previous year: EUR -16.1 million; all figures according to the German Commercial Code (HGB) and audited) in fiscal year 2021, which corresponds to earnings per share of EUR 5.32. The final figures for EBITDA and net income are slightly higher than the published preliminary results. The annual report for the fiscal year 2021 of the Deutsche Rohstoff Group is available on the company’s website at www.rohstoff.de.

The start to the 2022 financial year was positive. As expected, production from the Knight wells increased significantly in the course of the first quarter. In March, the Company was already producing approximately 3,500 barrels of oil per day (BOPD). So far in April, daily production has increased to around 4,500 BOPD. The highest production is still expected in May/June. The detailed quarterly report for the first quarter of 2022 will be released in the coming days. Daily production for 2022 is expected to be around 9,300-10,000 BOE, about half of which will be oil.

The capital expenditure budget as part of the forecast for drilling in Utah and Wyoming is EUR 58 million for 2022 and EUR 50 million for 2023. Cub Creek plans to start a drilling program in Wyoming in the second half of 2022 with five wells (80% share) and an investment volume of about USD 40 million. Salt Creek continues to expect the start of production from the first wells under the collaboration with Oxy in the fourth quarter of 2022. Salt Creek will invest a total of approximately USD 65 million in 18 wells. Additional interests in drilling by subsidiaries, particularly Bright Rock in Utah, account for about USD 15 million of investments.

In April, Deutsche Rohstoff USA received the long-awaited tax refund for the fiscal year 2019. With interest, this amounts to around USD 7.6 million.

Mannheim, 25 April 2022

Deutsche Rohstoff identifies, develops and sells attractive raw material deposits in North America, Australia and Europe. The focus is on the development of oil and gas deposits in the USA. Metals such as gold and tungsten complete the portfolio. Further information can be found at www.rohstoff.de

Disclaimer
This document contains forward-looking statements which are based on the current estimates and assumptions made by the assembly team of SiLLC. Forward-looking statements are characterized by the use of words such as expect, intend, plan, predict, assume, believe, estimate, anticipate, forecast and similar formulations. Such statements are not to be understood as in any way guaranteeing that those expectations will turn out to be accurate. Future performance and the results actually achieved by SiLLC and its affiliated groups depend on a number of risks and uncertainties and may therefore differ materially from the forward-looking statements. Many of these factors are outside SiLLC‘s control and cannot be accurately estimated in advance, such as the future economic environment and the actions of competitors and others involved in the marketplace. SiLLC neither plans nor undertakes to update forward-looking statements.

All transaction are carrying out by SiLLC, a private portfolio management assembly. This document is not an offer of securities for sale or investment advisory services. This document contains general information only and is not intended to represent general or specific investment advice. Past performance is not a reliable indicator of future results and targets are not guaranteed.Certain statements and forecasted data are based on current expectations, current market and economic conditions, estimates, projections, opinions and beliefs of SiLLC and/or its members. Due to various risks and uncertainties, actual results may differ materially from those reflected or contemplated in such forward-looking statements or in any of the case studies or forecasts. All references to SiLLC’s advisory activities relates to SiLLC International.