COGELEC (EPA:COGEC) - Cogelec : H1 2021 results. Strong sales momentum in an unstable environment.

Transparency directive : regulatory news

29/09/2021 17:40

PRESS RELEASE

                                 H1 2021 results

               Strong sales momentum in an unstable environment

                      EBITDA up sharply (3.8x to EUR3.8m)

               New investments for Kibolt 2021 guidance adjusted

Mortagne-sur-Sèvre, France, 29 September 2021, COGELEC (ISIN:
FR0013335742/ticker: COGEC), the French leader in access control systems for
building complexes, is today releasing its results for the first half of 2021.

The Board of Directors approved the 2021 half-year financial statements at its
meeting of 27 September 2021. These financial statements were audited, and the
associated certification reports are currently being prepared.

IFRS (EURm)                              H1 2021      H1 2020    % change
Limited review                           IFRS 16      IFRS 16

Revenue
                         26.1         17.7         47.8%
- France                                  23.0         15.7         46.8%
-Exports                                   3.1          2.0         55.8%
Gross margin                              16.9         11.8         43.0%
As a % of revenue                         64.8%        67.0%        -3.3%
Personnel expenses                        -9.1         -7.2         26.2%
External expenses                         -4.1         -3.4         20.2%
EBITDA(1)                                  3.8          1.0        272.2%
Current depreciation and
amortisation allocations/reversals        -2.6         -2.0         26.2%
Current operating income (expense)         1.2         -0.8        257.6%
Other non-current income and expenses     -3.5         -0.1       1336.9%
Operating income (expense)                -2.2          1.0       -117.3%
Financial income (expense)                 0.2         -0.2        215.6%
Tax expenses                              -0.2         -0.6        -68.9%
Net income (expense)                      -2.2         -1.8        -20.8%

(1) COGELEC defines EBITDA as operating income before depreciation,
amortisation and impairment of assets, net of reversals.

Business growth in a complex environment as the crisis comes to an end

H1 2021 revenue amounted to EUR26.1m, up 47.8% year-on-year, with growth
accelerating in the second quarter despite a tense context linked in particular
to the postponement of AGMs in France and Europe within co-ownerships, the
various waves of confinement in European countries and the difficulties in
supplying electronic components.

Revenue earned in France came out at EUR23.0m, up 46.8%, against a backdrop of
a robust business recovery in Q2. International revenue continued to climb,
ending the first half up 55.8% to EUR3.1m, versus EUR2.0m in H1 2020.
Subscriptions totalled EUR6.6m, accounting for 25% of revenue at end-June 2021,
up 19.6% year-on- year and reflecting continuous growth for six half-year
periods in a row, demonstrating the strength of the business model.

Sharp improvement in EBITDA driven by sales momentum

The gross margin amounted to EUR16.9m (64.8% of revenue), attributable to the
change in the Equipment/Subscriptions product mix, which skewed in favour of
Equipment sales in H1 2021.
The Group expanded its workforce to keep this sales momentum going, focusing in
particular on the production and logistics teams, as well as the R&D and tech
support departments. Personnel expenses were on the rise, with a total
headcount of 311 employees at 30 June 2021 compared to 296 at 30 June 2020.
The increase in external expenses mainly reflected the Group's growing use of
temporary employees, which had been suspended in H1 2020 due to the lockdown,
and also higher transport costs as business picks up again and with travel
costs on the rise again now that the borders are open, making business trips,
jobs and events possible again. EBITDA ended up improving significant over the
period to EUR3.8m.

In the short term, technological enhancement will be necessary for Kibolt to
capture medium-term market potential

Managed via an application, the Kibolt Universal Smart Key provides secure
access to all equipped doors. After the Kibolt universal key was launched in Q2
2021, initial customer feedback demonstrated the product's full potential while
also highlight certain features calling for adjustments. To carry out new
product developments, preserve the customer base and capitalise on the broad
market potential, the Group thus decided to suspend sales of the current Kibolt
generation. The new Kibolt generation should be out by September 2022 at the
latest.

Other non-current operating income and expenses, which were exceptionally high
over the first half, included virtually all costs associated with the decision
to postpone the Kibolt launch, i.e. EUR3.4m.

Current operating income amounted to +EUR1.2m vs. an expense of -EUR0.8m last
year. After taxes and the impact of the one-time decision to postpone the
Kibolt launch, the Group posted a net result of -EUR2.2m.

At 30 June 2021, total equity stood at EUR7.8m. Financial debt under IFRS was
EUR23.9m and included the EUR9m government-backed loan taken out in April 2021.
The Group ended H1 2021 with a cash position of EUR23.0m.

Post-H1, on 22 July, RAISE Investissement acquired a 35% stake in Cogelec
Développement, the controlling entity of S.R.C., the majority shareholder of
Cogelec. RAISE Investissement is a fund that invests in growing, high-potential
French ISEs.

Continued growth in France and abroad, coupled with a new EBITDA target

COGELEC expects revenue to continue climbing both in France and internationally
over full-year 2021, driven by the Intratone brand. However, given mainly the
continuing supply chain bottleneck liable to weigh on hardware sales in H2, the
FY 2021 EBITDA target been revised to around 10% of revenue.

For 2022, the Group expects strong growth in France and Europe, accompanied by
an increase in the EBITDA/revenue ratio.

The financial report for the 2021 interim financial statements has been made
                        public and filed with the AMF.
           It is available in French on the Company's website at:
            https://www.cogelec.fr/investisseurs/documentations/

                              Upcoming events
       Publication of Q3 revenue: 21 October 2021, after market close

Contacts

Cogelec Véronique Pochet
Chief Financial Officer
+33 (0)2 72 67 00 91
investors@cogelec.fr

Actifin
Ghislaine Gasparetto
Financial Communication
+33 (0)6 21 10 49 24
ggasparetto@actifin.fr

Actifin Jennifer Jullia
Financial Press Relations
+33 (0)6 47 97 54 87
jjullia@actifin.fr

About COGELEC

COGELEC is the French leader in access control systems for building complexes.
In 2007, COGELEC created the first global wireless interphone with subscription
offer, under the Intratone brand.

COGELEC has already outfitted 1.4 million homes, out of a potential total of
15.4 million homes in France. COGELEC is an international group also offering
its solutions in Germany, the United Kingdom, the Netherlands, Belgium and
Luxembourg.
Based on an indirect distribution model, combined with very close-knit
relations with end clients (social landlords and building complex management
associations), COGELEC posted revenue of EUR40.4m in 2020.
COGELEC is listed on the Euronext Growth Paris, and is part of the Growth
AllShare, Tech Croissance and PEA-PME 150 indices.

For more information: www.cogelec.fr

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COGELEC (EPA:COGEC) - Cogelec : H1 2021 results. Strong sales momentum in an unstable environment.

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