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JENOPTIK AG with positive outlook for the year – Executive Board confident that current market expectations for 2020 can be met – 1st quarter with declines in revenue and earnings, but solid demand and good free cash flow

At the beginning of the year, the Executive Board of JENOPTIK AG had already adopted a number of precautionary measures to react quickly to the new situation created by the corona pandemic. In addition to measures to ensure liquidity and profitability, the operating business including the supply chain was secured and working capital was optimized.

As a result of the countermeasures taken and in expectation of a stronger second half of the year, the Executive Board anticipates that Jenoptik will be able to meet the current average market expectations of analysts for the full year 2020: revenue of around 800 million euros and an EBITDA margin of around 14.3 percent. In addition, the projects initiated for structural adjustment, efficiency enhancement and portfolio management should contribute to accelerate growth and improve the Group's profitability from next year at the latest. For reasons of transparency, the related expenses are reported separately in this fiscal year.

In the second quarter, the Executive Board expects further Corona-related revenue and earnings declines, particularly in the automotive-related business units and in the aviation industry.

Preliminary key data for the 1st quarter.

The Jenoptik Group has made a solid start to the year 2020. In the 1st quarter, demand was positive in many areas despite Corona. The company recorded an increase in order intake (adjusted for the effects of the deconsolidation of Hillos GmbH) of 3.6 percent to around 212 million euros (prior year 210.4 million euros). The order backlog increased significantly by more than 12 percent to 523 million euros (31.12.2019: 466.1 million euros).

Business with public-sector customers and with the semiconductor equipment industry was not affected by the pandemic and recorded growth. Revenue and earnings of the Light & Production division were strongly impacted by developments in the automotive industry. In total Jenoptik generated revenue of around 165 million euros. Adjusted for the effects of the deconsolidation of Hillos GmbH (in the prior year revenue of 5.7 million euros) this corresponds to a slight decline of around 8 percent in the seasonally weakest quarter in the course of the year (prior year 178.3 million euros).

The decline in revenue led to an adjusted EBITDA of approximately 17 million euros (prior year 23.8 million euros). The adjusted EBITDA margin including non-recurring extraordinary expenses was therefore around 10.5 percent (prior year 12.9 percent). Unadjusted EBITDA amounted to approximately 14 million euros, with an EBITDA margin of 8.3 percent.

In the period under review, the free cash flow improved significantly from minus 5.1 million euros in the prior year to currently over 14 million euros. In addition to the healthy balance sheet ratios and the comfortable liquidity situation Jenoptik also has sufficient unused credit lines of around 200 million euros.

The company will publish the detailed business figures for the 1st quarter 2020 and more detailed information on the planned development in the coming months on Wednesday, May 13, 2020.

The Executive Board