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

Feintool generated sales of CHF 390.1 million and an operating result (EBIT) of CHF 0.2 million in the 1st half of 2024. The currently very demanding market environment in Europe is leading to low visibility, which is why Feintool has been suspending its guidance for 2024 - as already communicated on 17 July 2024. The company is reacting with the ‘Level-up 2026!’ efficiency and growth program.

As a leading supplier of high precision parts for the automotive and industrial sectors, the Feintool Group's performance in its different target markets varied from region to region in the first half of 2024.

Feintool recorded strong results in Asia and the United States: Sales in these regions were significantly higher than in the prior-year period, increasing by 11% and 16% respectively. In Europe, business with parts for combustion engines was in line with expectations overall.

However, the Group faced major challenges in its electrolamination stamping business in Europe for different reasons: political uncertainties regarding electromobility (short-term cancellation of subsidies, particularly in Germany), an economic slowdown, inflationary pressures and energy prices that are still high compared to other countries.

These negative effects led to a sharp decline in the sale of electric vehicles in some markets, while the industrial business for electric motors saw an unexpected, sharp decline in sales. This led to overcapacities on the part of 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 underlying conditions, Feintool has responded in two ways: first with cost reductions and a restructuring program that includes the relocation of large-volume production from Lyss (Switzerland) to other Feintool sites, mainly to the Czech site in Most. The second focal point is a future concept to further expand the Group's high level of expertise and thus increase innovation 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 into India. Work on the new site in the metropolitan region of Pune is progressing according to plan. The ground-breaking 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.