CORPORATE NEWS

Daldrup & Söhne AG significantly increases EBIT result
in H1 2022

• Group total output of 17.7 million euros
• Group EBIT of 1.2 million euros significantly above previous year's level
• Satisfactory order situation, Group order backlog at 27.1 million euros as of mid-September
• Robust equity ratio of 49.5 percent
• Group forecast 2022 confirmed overall: total operating revenue of around 42 million euros, EBIT margin of 4 % to 6 % of total operating revenue

Oberhaching / Ascheberg, 30 September 2022 - The drilling technology and geothermal specialist Daldrup & Söhne AG (ISIN DE0007830572) achieved a total output of 17.7 million euros at group level in the first half of 2022 (previous year 22.9 million euros). The Group improved its half-year earnings before interest, taxes, depreciation and amortisation (EBITDA) as of 30 June to 2.4 million euros (1.8 million euros). The group achieved earnings before interest and taxes (EBIT) of 1.2 million euros (0.6 million euros). The EBIT includes about 400 kEUR from the sale of power plant components of the Kalina technology. The Group's net income for the half year (EAT) amounted to 0.4 million euros (0.4 million euros). This results in earnings per share (EPS) of unchanged 7 cents (7 cents).

For Daldrup & Söhne AG, the first half of 2022 was characterised by a positive operative development in all business areas despite the deteriorating general economic environment. Around 0.4 million euros were invested in the core business for new drilling rigs and in operating and office equipment. With these investments, the company intends to increase the efficiency of its drilling activities - also against the background of continuing scarce personnel resources. Profitability is to be improved with targeted investments and further measures.

Andreas Tönies, Spokesman of the Executive Board, comments on the half-year results: "We have further improved the operating profitability of the Daldrup Group. Targeted investments and measures to increase efficiency strengthen our performance at a time when the demand for drilling services for geothermal projects is increasing significantly. The significant increase in energy price levels highlights the pressure to act on alternatives, especially for space heating and hot water. Geothermal energy offers a climate-friendly, decentralised and base-load-capable on-site heat supply. It can cover a large part of the heat demand. However, politicians must now quickly improve the framework conditions in order to be able to use the great potential of geothermal energy on a large scale."

Order backlog of 27.1 million euros ensures capacity utilisation well into 2023

The order situation in all business areas of Daldrup & Söhne AG remains satisfactory. At the end of mid-2022, the order backlog will reach around 27.1 million euros. This means that the drilling business will be utilised until well into the year 2023. The market volume of around 136 million euros, which is relevant for Daldrup and assessed with probabilities of occurrence, as a prospect of possible order backlogs in the coming financial years, also indicates a continuing satisfactory business environment overall.

Exploratory drilling and drilling for geothermal power and heat projects continues to be brisk in the DACH region and Benelux. For example, further geothermal projects in Hamburg, in the Rhine-Main region and in Switzerland are due to be drilled by Daldrup & Söhne AG in the next few quarters. The heat turnaround secures an economically lucrative, structural growth market for geothermal energy in the medium term.

Board of Directors confirms forecast for the 2022 financial year

Assuming that the Covid 19 pandemic does not worsen in the markets relevant for Daldrup & Söhne AG, that there are no supply bottlenecks or further increases in energy costs, and that the current deep wells can be completed on schedule by the end of the year, the Management Board confirms the Group's overall forecast for the 2022 financial year: Given the current order situation and continued utilisation of crews and drilling rigs, the Management Board still expects to achieve a total output of around EUR 42 million with an EBIT margin of between 4°% and 6°%.

Note:

The published consolidated half-year report as of 30 June 2022 with further details on the business and earnings development is available for download at under Investor Relations / Company Reports / 2022.

About Daldrup & Söhne AG

Daldrup & Söhne AG (ISIN: DE0007830572, WKN: 783057) with a corporate history spanning more than 75 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

     Fax +49 (0)2593-9593-60

Bajuwarenring 17a   

82041 Oberhaching