R&S Group increases guidance for 2024 and beyond

R&S Group Holding AG / Key word(s): Profit Hike R&S Group increases guidance for 2024 and beyond 17-May-2024 / 06:30 CET/CEST Release of an ad hoc announcement pursuant to Art. 53 LR The issuer is solely responsible for the content of this announcement. Ad hoc announcement pursuant to Art. 53 LR

R&S Group increases guidance for 2024 and beyond

• Revenue growth above 12%, higher than the previous guidance range
• Full-year 2024 EBIT margin of around 20%, up from 16-18%
• Free cash flow margin guidance raised to mid-teens double-digit as percent of net sales
  from mid to high-single digit
• Mid-term outlook also increased accordingly above the previous guidance

Sissach/BL, Switzerland, 17 May 2024 – R&S Group Holding AG (SIX: RSGN) revised its guidance for the full-year 2024 (FY2024) that was published on 24 January 2024 and now expects net sales to grow above 12%, elevated from the upper end of the previous guidance range of 9-12%, and an increased EBIT margin of around 20% (previous guidance 16-18%). Thanks to strong cash conversion, the free cash flow margin guidance is also raised to mid-teens double-digit as percent of net sales.

The strong order backlog per end of April of over CHF 200 million and a book-to-bill ratio of 1.3x reflect a favorable medium-term outlook. The higher expected net sales growth, economies of scale and the measures implemented to protect the gross margin and improve operational performance are showing a much higher impact on margin expansion than initially anticipated.

Dynamics in the transformer markets in Central and Eastern Europe, where R&S Group maintains high market shares in its focus markets, as well as in new target markets such as the Nordics, the Baltics and Germany remain favorable. As such, the Executive Committee expects good volume growth for 2024 and beyond. In the mid-term, R&S Group aims for net sales growth of around 12% per annum (previously around 10%), an EBIT margin of around 20% (before mid-teens) and a free cash flow margin in the mid-teens double-digit as percent of net sales, up from around 10% previously.