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Daldrup & Söhne AG successfully completes first exploratory well for Swiss Nagra, further drilling already started

Analysts confirm recommendations and adjust price target

Oberhaching / Ascheberg, March 3, 2020 - The research houses SMC-Research and Pareto Securities have confirmed their recommendations for the drilling technology and geothermal energy specialist Daldrup & Söhne AG (ISIN DE0007830572) with Hold respectively Buy, taking into account the sale of the Geysir Group to the IKAV Group including the power plant activities. With the completed sale of the power plant business, the Daldrup Group has significantly reduced liabilities and will now, as previously announced, focus on the drilling services business in order to put it on a more profitable basis. Adjusted for the value adjustments from the geyser sale and consulting services already communicated on January 15, 2020, the operational drilling business bundled in the AG was positive in the financial year 2019 according to preliminary, unaudited figures. Total output is expected to reach the forecast value of at least EUR 39 million.

Analysts set price targets of 4.00 and 4.30 Euro
The analysts evaluate the sale of the Geysir Group as a "liberation": Holger Steffen, SMC-Research, sums up: "Daldrup & Söhne clearly occupies future topics with the topics renewable energies, drinking water production and raw materials and can concentrate on the development of the drilling business in the future ... He sets a price target of 4.30 Euro. Zafer Rüzgar, Pareto Securities AS, calculates a target price of 4.00 euros and issues a buy recommendation. He assumes that Daldrup will be able to increase its EBIT margin towards 5 %. This is to be achieved by, among other things, increased efficiency in the handling of drilling orders and in purchasing as well as improved project controlling.

Nagra commissions further exploratory drilling
For the Swiss company Nagra, the National Co-operative for the Disposal of Radioactive Waste, Daldrup & Söhne AG has successfully completed an initial exploratory well in Bülach, north of Zurich, with a total project volume of around EUR 8 million. The order will be booked in the 2019 financial year in terms of sales and earnings. The next exploratory well has already been started for Nagra in Marthalen, south of Schaffhausen. The current project value is approximately EUR 5.3 million. Nagra is seeking a suitable site for a deep geological repository for radioactive waste in Switzerland. The boreholes are intended to complete the overall geological picture of the potential siting regions and thus enable the selection of the safest site for a deep geological repository.

The research documents are available for download on the Daldrup homepage under Investor Relations / Research.

About Daldrup & Söhne AG
Daldrup & Söhne AG (ISIN: DE0007830572, WKN: 783057) with a corporate history spanning more than 70 years is a specialist provider of drilling and environmental services and ranks as one of the leading companies in Germany. Its activities are divided into the business divisions Geothermics, Raw Materials & Exploration, Water Extraction as well as Environment, Development & Services (EDS). The Geothermics business division provides drilling services for near-surface geothermics (especially geothermal probes of heat pumps), along with drilling services for deep geothermics up to 6000 m, in order to utilise the geothermal energy accessible in this way for electricity and/or heat generation. In the Raw Materials and Exploration business division, the bores made by Daldrup & Söhne AG serve for exploring and developing fossil fuel deposits (especially coal and gas) as well as mineral resources and ores (e.g. copper and gold). The Water Extraction business division comprises well construction for the extraction of drinking, service, curative, mineral, boiler-feed or cooling water as well thermal brine. The Environment, Development & Services (EDS) business division comprises special environmental engineering services such as the hydraulic clean-up of contaminated sites, the drilling of gas extraction wells for recovering waste dump gas, the provision of groundwater quality measuring points or the installation of water purification plants.

The shares of Daldrup & Söhne AG are listed in the Scale (sub-segment in the open market of the Frankfurt Stock Exchange).

Disclaimer
This publication represents neither an offer for sale nor a call to submit a tender for the purchase or underwriting of securities. This publication and the information it contains is not intended for direct or indirect dissemination in or within the United States of America ("USA"), Canada, Australia or Japan.

Press & Investor Relations contact
Daldrup & Söhne AG
Falk v. Kriegsheim
Fon +49 (0)2593-9593-29
Bajuwarenring 17a

82041 Oberhaching