Third-quarter report 2023 (January - September 2023) of the EMS Group

Ad hoc announcement pursuant to Art. 53 LR

 

EMS Group:

- Successful new business with innovative specialties

- Growth of net sales in local currencies in USA and China

- Weak foreign currencies hamper development in Swiss Francs

- Continuing weak economy in Europe, signs of recovery in China

Course of business January - September 2023

The EMS Group, with its companies combined in the EMS-CHEMIE HOLDING AG and globally active in the business areas High Performance Polymers and Specialty Chemicals, achieved net sales amounting to CHF 1,697 million (1,871) in the first nine months of 2023. New business, generated successfully in all markets, was not able to compensate for general restraint shown by consumers and companies, or the effect of weaker foreign currencies to the Swiss Franc. In local currencies, net sales in the USA and China were higher than previous year.

As expected, the economic environment has deteriorated. In Europe in particular, higher energy costs, persistently high core inflation and higher interest rates are putting lasting pressure on purchasing power. Due to significantly worsening locational factors, particularly with regard to costs, corresponding investments are being held back. Although first signs of recovery can be seen in the Chinese market, problems in the real-estate market continue to dampen the consumer mood and many small and medium-sized companies are finding themselves in a difficult financial situation. Industrial manufacturing in the USA is moving sideways. After a short chip-related recovery, the global automotive industry is showing signs of slowing down again.

Already at the start of the year, EMS prepared for weaker market development. The proven strategy of further market development with specialties will be concentrated on and development and expansion projects focusing on new business will be pushed ahead. Planned new business was achieved successfully, resulting in higher net sales in local currencies in the USA and China. In particular, the new products and solutions providing cost and energy savings were received with great interest by customers. Market positions were further strengthened.

Due to the continuing weak global economy and unfavorable currency influences, EMS continues to expect net sales and operating income (EBIT) in 2023 to be below previous year.