Arteche Lantegi Elkartea S A : Publicación de resultados del ejercicio 2023/FY 2023 Earnings release (2 MB)

Communication of

Financial Information

January-December 2023

Arteche Lantegi Elkartea, S.A.

19 March 2024

OTHER RELEVANT INFORMATION

Arteche Lantegi Elkartea, S.A. (hereinafter, "Arteche", or the "Company"), in compliance with the provisions of Article 17 of Regulation (EU) No. 596/2014 on market abuse and Article 227 of Law 6/2023, of 17 March, on the Securities Market and Investment Services and concordant provisions, as well as Circular 3/2020 of the BME Growth segment of BME MTF Equity, hereby publishes the following:

1. FY 2023 Earnings Release.

In compliance with Circular 3/2020 of BME MTF Equity, it is expressly stated that the information provided herein has been prepared under the sole responsibility of the Company and its directors.

Sincerely,

Arteche Lantegi Elkartea, S.A.

Mr. Alexander Artetxe

Chairman of the Board of Directors

FY 2023 Earnings Release

March 19, 2024

Disclaimer

The information contained in this presentation of results has been prepared by Arteche Lantegi Elkartea, S.A. (hereinafter the Company or Arteche Group) and includes financial information drawn from the the full year consolidated accounts of the Company and its Group as of December 31, 2023, audited by Ernst & Young S.L, as well as declarations concerning future forecasts.

The information and declarations concerning future forecasts about Arteche Group are not historical facts, as they are based on numerous assumptions, subject to risks and uncertainties, many of which are difficult to predict and, generally, beyond the control of Arteche Group. Shareholders and investors are hereby informed that these risks could lead to real results and developments significantly differing from those expressed, implied or projected in the information and future forecasts. With the exception of the aforementioned information, the information, opinions and statements contained in this document have not been verified by independent third parties and, for this reason, no warranty of any kind, either express or implied, is given regarding the impartiality, accuracy, completeness or correctness of the information, opinions and statements expressed therein.

This document does not constitute an offer or invitation to purchase or suscribe shares, in accordance with the provisions of the Spanish Royal Legislative Decree 4/2015 of 23 October, approving the consolidated text of the Securities Market Act, and its draft legislation. Likewise, this document does not constitute an offer of purchase, sale or exchange, nor a request of an offer of purchase, sale or exchange of securities, nor a request for any vote or approval in any other jurisdiction.

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FY 2023 Key highlights

Orders grew in the year by +16.4% to €474.1 million, well above market growth. All geographic regions and business lines grew significantly.

Revenue increased by +16.0% to €401.3 million and grew by double digit both in H1 and H2.

Direct margin reached 32.1% in FY23 vs 29.7% in FY22.

EBITDA reached €40.7 million, growing by +35.1% year on year.

Deleveraging continued to 1.0x NFD/EBITDA at 31 December 2023 vs 1.6x at 31 December

2022.

Net profit grew by +56.9% compared to the previous year, to €12.1 million.

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FY2023 Guidance Met

Guidance	Reported	Achievement
FY2023	FY 2023

Revenue(€ million) 385.0 - 405.0

401.3

EBITDA (€ million)

36.5 - 40.5

40.7

EBITDA Margin	9.5% - 10.0%	10.1%
(% over revenue)

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Historical figures: solid business model

Revenue (€ million)	EBITDA
(€ million and % o/revenue)

Net debt

(€ million and times EBITDA)

						45,0
						401 40,0
					346	35,0
				282		30,0
		255	265
				25,0
205	217					20,0
						15,0
						10,0
						5,0
						0,0
2017	2018	2019	2020	2021	2022	2023

140

12,00%

10% 120

10,00%

				100
		11%		9%
				8,00%
	11%	10%	9%	80
11%

					41	60
						6,00%
			30		30	40
						4,00%
22	24	26		26

202,00%

0

0,00%

2017 2018 2019 2020 2021 2022 2023

5.4

3.7

2.9

2.2

119

2.0 1.6

901.0

75 66

51 49 42

2017 2018 2019 2020 2021 2022 2023

600,00%

500,00%

400,00%

300,00%

200,00%

100,00%

0,00%

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FY 2023 Financial highlights

Order	Revenue	Direct	EBITDA	Net profit	NFD /
intake	Margin(1)	EBITDA
€474.1m €401.3m	€133.6m	€40.7m	€12.1m	1.0x

+16.4%	+16.0%	+29.7%	+35.1%	+56.9%	vs 1.6x
y/y	y/y	y/y	y/y	y/y	at 31
December
	(+23.3%	(+39.7%	(+41.3%
		2022
	at constant	at constant	at constant
	currency(2))	currency)	currency)

(1) Direct margin = Income at selling price - procurement - direct labor - direct operating expenses

(2) FY2023 figures using FY2022 average exchange rates.

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Revenue continued in FY23 its trend of double-digit growth

Order intake (€m,%)

Revenue by geographical region(1) (€m,%)

+16.4%

		474.1
407.3	+24.1%	12%
12%	+19.3%	14%
14%
37%	+4.4%	33%

37% +24.8% 40%

FY 2022

FY 2023

Book - to - Bill: 1.18x Backlog: €227.5m

			+16.0%
				401.3
	APAC	345.9	+0.0%	12%
	14%		15%
	LATAM	13%	+33.3%
	33%		35%
		+21.8%
	NAM
	40%	+10.8%	38%
	EMEA
		FY 2022		FY 2023

1. Revenue by destination: EMEA (Europe, Middle East and Africa), NAM (Mexico, USA and Canada), APAC (Asia Pacific and Turkey), LATAM (South and Central America).

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Positive contribution from all businesses

Revenue by business line (€m,%)

+16.0%	401.3
345.9	11%
+57.2%

8%	19%
19%
	+19.7%
73%	69%
+10.3%

FY 2022

FY 2023

Network Reliability

T&D Grid Automation

Measurement & monitoring systems

Measurement and Monitoring Systems

Reaching #2 in High Voltage and Top 3 in Medium Voltage in regional markets

• Record production in all HV & MV plants.
• Top four markets (same as in 2022): US, Spain, Mexico and Brazil.
• ZEPAS (Zero Emission Portable Auxiliary Services Solution) now available.
• Arteche is the preferred optical current instrument transformer supplier for major HVDC players.

T&D Grid Automation

World's supplier of choice for auxiliary relays

• New 61850 station & process bus architectures solutions: distributed and soon concentrated.
• Relay orders coming from 80 different countries exceeding 465,000 pieces.
• Protection & Control projects deliveries for high speed train projects in Mexico.
• E-commercechannel for relays & test blocks reached €15 million in orders.

Network Reliability

Increasing grid complexity (automation + distributed renewables) fueling our growth

• First installation in operation for PQ Switch (external pre-insertion resistor circuit breaker).
• Record bookings for harmonic filters & capacitor banks in Australia, US & Canada.
• New 15kV recloser offering 12% carbon footprint reduction.
• Increasingservices. services portfolio: Grid code compliance, shortcircuit studies, field

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Direct margin improvement in FY23

Direct margin(1) evolution by year	Direct margin(1) evolution by half
(% of income at selling price(2))	(% of income at selling price(2))

+242 bps

vs FY22

32.1%	32.0%	32.1%

31.1%
30.2%	30.5%
30.6%

29.7%

28.5%

FY21	FY22	FY23	H121	H221	H122	H222	H123	H223
(1) Direct margin = Income at selling price - procurement - direct labor - direct operating expenses.
(2) Income at selling price = Revenue +/- change in inventories at selling price.						9