Accell N: the group takes stock of trading and repays the GO-C loan


PRESS RELEASE

ACCELL PROVIDES NEGOTIATION UPDATE AND REIMBURSES GO-C LOAN

SALES GROWTH AND INCREASE IN PROFIT CONTINUE WITH EBIT RISING 32% TO 107 MLN

HEERENVEEN (NETHERLANDS), DECEMBER 10, 2021. Accell Group NV (Accell) announces strong profit increase in 2021 with EBIT YTD in November reaching 107 million euros (8.3% of net sales), up 32.1% from 2020 Taking into account a high comparison base in H2 2020 and persistent headwinds from the global shortages component, November net sales for the year amounted to € 1,287 million, up 4.47 million euros. % from 2020. Accell will fully repay its GO-C facility in December and has reorganized its existing revolving credit facility (RCF) from seasonal availability to full year to better reflect changes in seasonal patterns.

Ton Anbeek, CEO of the Accell group: “Considering the circumstances of limited component availability, we recorded good sales levels and continued strong profit growth in the second half of 2021 through November. We have benefited from our various initiatives aimed at alleviating the lingering effects of global component shortages and recovering added value. In parallel, we continued to execute our strategy with good progress on our digital roadmap across brands and regions and the introduction to market of several innovations in our bicycle brand portfolios. months, we also launched several new electronic freight concepts through our Raleigh, Lapierre, Batavus and Winora to further strengthen our leadership position in this rapidly growing bicycle segment. Overall, we are on track to meet our 2022 targets. ”

TRADING S2 2021 AND YTD

Underlying demand in Europe for bicycles and parts and accessories has remained strong in the second half of 2021 to date. Component shortages continued as expected and were notably caused by lockdowns in some Asian countries, such as Vietnam. During September and October, several major Asian component suppliers resumed production.

Production levels from Accell’s own production facilities over the past few months have been stable and higher than in the first half of 2021, although still below market demand.

The turnover for the last 5 months is up 5.8% compared to a solid 2020 comparison basis (same period 2020 vs 2019: + 38.2%). In the Benelux and in the central region, growth levels have been competitive. Sales in other regions were partly limited due to poor product availability. Similar to bicycles, parts and accessories sales showed little growth compared to a strong baseline in H2 2020 and taking into account availability issues, especially on a few top riders.

Annual sales for November were 1,287 million euros, up 4.4% from the same period last year. November EBIT YTD increased 32.1% to 107 million euros (8.3% of net sales) from 81 million euros (6.6% of net sales) for the same period of the year last (excluding exceptional items: 104 million euros compared to 86 million euros). The improvement in performance was mainly driven by a continued recovery in added value (+269 bps) which was partly used to increase marketing and R&D efforts.

In light of the continuing distortions in component availability and strong market demand, Accell has consciously invested in inventory and product availability. Such actions are not only taken to better meet current demand, but are also taken in anticipation of continued high demand in 2022. In this context, the TWC (as a% of net sales) at the end of November was at 33.8%. The average TWC for the past 12 rolling months was 27.5%.

GO-C REFUND AND RCF REARRANGEMENT

Accell will repay the remaining GO-C facility of € 69 million before the end of 2021. As a result, Accell will revert to pre-covid covenants and restrictions such as the payment of dividends will be lifted. Given the overall global uncertainty due to the pandemic and the need to invest in future growth, Accell will continue to take a cautious stance on cash distributions.

In line with the change in seasonal patterns, Accell also entered into an agreement with its banking consortium to change its existing RCF agreement from seasonal availability to a full year for the remaining term.

OUTLOOK FOR THE FULL YEAR

Low customer inventories combined with favorable secular trends such as electrification, investments in cycling infrastructure, government fiscal stimulus and subsidies are expected to drive continued strong demand.

Order books are strong and well filled, but global component shortages will continue and sales levels of bikes as well as parts and accessories will be impacted by fluctuations in arrival times for some components. In this context, it is expected that the EBIT for fiscal year 2021 will significantly exceed fiscal year 2020.

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ABOUT THE ACCELL GROUP

We believe that cycling makes the world move forward. We design simple and smart solutions to create a fantastic cycling experience for everyone who uses our bikes. Accell Group manufactures bicycles, spare parts and accessories for bicycles. We are the European market leader in e-bikes and the second largest in bicycle parts and accessories, with many major European bicycle brands under one roof. These brands were built by pioneers for whom the best was not enough. We still embody the entrepreneurial spirit of these family businesses today. We continue to strive to create high quality, high performance and cutting edge products, driven by the continuous exchange of know-how and know-how. Well-known bicycle brands in our portfolio include Haibike, Winora, Ghost, Batavus, Koga, Lapierre, Raleigh, Sparta, Babboe and Carqon. XLC is our brand of spare parts and accessories for bicycles. Accell Group employs approximately 3,500 people in 15 countries. Our bikes and related products are sold to dealers and consumers in over 80 countries. In 2020, we sold around 897,000 bicycles and recorded net sales of 1.3 billion euros. www.accell‐group.com

NOTES TO EDITOR, NOT FOR PUBLICATION

For more information: Ton Anbeek – CEO / Ruben Baldew – CFO, tel: (+31) (0) 513-638702

FINANCIAL CALENDAR

March 4, 2022: Publication of 2021 annual results

March 8, 2022: Publication of the 2021 annual report

April 20, 2022: General meeting of shareholders

This press release contains information that qualifies or may qualify as inside information within the meaning of Article 7 (1) of the EU Market Abuse Regulation (596/2014 / EU). The press release has not been audited by an external auditor.

FORWARD-LOOKING STATEMENTS

This document may contain forward-looking statements concerning the results, equity and liquidity of Accell Group. In addition, forward-looking statements may include, but are not limited to, phrases such as “considers”, “expects”, “considers”, “targets”, “plans”, “estimates” and words making sense. These statements relate to or may have an effect on future events, such as the future financial results, plans and strategies of the Accell Group business. Forward-looking statements are subject to certain risks and uncertainties which are difficult to predict and which may cause material differences between actual results, position and performance, and expected future results, position or performance implicitly or explicitly contained therein. forward-looking statements. statements. Factors that could cause actual results to differ from current expectations include, but are not limited to, macroeconomic, business and business trends and conditions, changes and developments in legislation, technology, taxes, case law and regulations. regulations, stock market fluctuations, lawsuits, agency investigations, competition and economic and / or general policy changes and other developments in countries

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and the markets in which Accell Group operates. These and other factors, risks and uncertainties, which may have an effect on any forward-looking statement that could lead to results materially different from those described in the forward-looking statements, are described in the Accell Group annual report. The forward-looking statements contained in this document refer exclusively to the statements as of the date of this document and Accell Group accepts no responsibility or obligation to change any forward-looking statements contained in this document, whether or not they relate to new information. , future events or otherwise, unless Accell Group is legally required to do so.

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Accell Groep SA published this content on December 10, 2021 and is solely responsible for the information it contains. Distributed by Public, unedited and unmodified, on December 10, 2021 08:31:06 AM UTC.

Public now 2021

All news on ACCELL GROUP NV
Sales 2021 1,315 million
1,483 million
1,483 million
Net income 2021 61.1 million
68.9 million
68.9 million
Net debt 2021 98.3 million
111 million
111 million
PER 2021 ratio 15.7x
Yield 2021 1.40%
Capitalization 958 million
1,081 million
1,080 million
VE / Sales 2021 0.80x
VE / Sales 2022 0.71x
Number of employees 3,100
Free float 87.8%

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