• Weak economy puts pressure on business activity
• Decline in demand and project postponements impact incoming orders
• Solid yield level overall

Prime Standard-listed GESCO SE (ISIN DE000A1K0201), an industrial group of medium-sized market and technology leaders, today published its 9-month report 2023.

The weak economic situation in Germany has increasingly clouded GESCO Group's business environment in recent months, dashing hopes of an upturn in the second half of the year. Consumers' reluctance to spend is leading to a decline in demand in the German economy, which is now also being felt in part by our subsidiaries and is reflected in the 9-month figures: Group sales in the first 9 months of 2023 totalled € 430.7 million (9M 2022: € 435.4 million). Group operating EBIT totalled €31.2 million in the first nine months (9M 2022: €40.8 million) and Group earnings after minority interests amounted to €19.6 million (9M 2022: €26.3 million)

The main reasons for the decline in sales and, above all, earnings are the poor development in the construction industry and the significant fall in material prices. The fall in material prices for energy, paper and steel, among others, led to a decline in sales at individual subsidiaries due to price adjustments.

In light of this and other current information on the development, non-cash impairments of the investments are unavoidable. However, the impairments will not be recognised until the 4th quarter. These necessary impairments and the slowdown in business momentum prompted the Executive Board to adjust the forecast corridor for the current 2023 financial year on 3 November.

Accordingly, the Executive Board now expects Group sales of € 555 - 575 million for the 2023 financial year and Group earnings after minority interests in the range of € 19.5 - 21.5 million after non-cash impairments of € 5 - 6 million.

The full 9-month report 2023 is available at

¹⁾ After minority interests²⁾ XETRA closing price on the balance sheet date³⁾  Number on the balance sheet date

About GESCO:

GESCO SE is an industrial group ppe with market- and technology-leading companies in the capital goods industry specialising in process, resource, healthcare and infrastructure technology. As a Prime Standard-listed company, GESCO SE gives private and institutional investors access to a portfolio of hidden champions in the industrial SME sector.

Contact:

Peter Alex
Head of Investor Relations

Phone +49 (0) 202 24820-18
Fax +49 (0) 202 24820-49
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