Perrot Duval S A : Halbjahresbericht 2023/2024

Perrot Duval Holding S.A.

HALF-YEAR REPORT 2023/24 (FROM 1 MAY TO 31 OCTOBER 2023)

2

CONTENTS

1. KEY FIGURES
2. REPORT OF THE BOARD OF DIRECTORS

1. CONSOLIDATED BALANCE SHEET
2. CONSOLIDATED INCOME STATEMENT

9 EARNINGS PER SHARE FOR SHAREHOLDERS

10 CONSOLIDATED CASH FLOW STATEMENT3

1. CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
2. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

15 ADDRESSES

Half-year report 2023/24

KEY FIGURES

KEY FIGURES

	CHF 1,000		1st half-year	1st half-year
			23/24	22/23
	Order intake		7,825	11,013
	Change versus previous year		-28.9%	117.4%
	Net sales		8,498	7,284
	Change versus previous year		16.7%	20.1%
	Gross margin		57.9%	74.9%
	EBITDA		-702	474
	as % of net sales		-8.3%	6.5%
	Depreciation and amortisation		-577	-699
	EBIT		-1,279	-224
	as % of net sales		-15.1%	-3.1%
	Net profit/(loss)		-1,477	-591
	as % of sales		-17.4%	-8.1%
4			31.10.23	31.10.22
	Total assets		19,026	22,887
	Shareholders' equity		11,713	14,854
	Equity ratio (%)		61.6%	64.9%
	Employees (full time equivalent)		106	109
	PERROT DUVAL SECURITIES		1st half-year	1st half-year
			23/24	22/23
	Bearer shares
	High	CHF	87.00	102.00
	Low	CHF	61.50	76.00
	As at 31.10.	CHF	62.90	80.50
	Market capitalisation		31.10.23	31.10.22
	Market capitalisation	CHF mio	8.5	10,8

Half-year report 2023/24

Key Figures

REPORT OF THE BOARD OF DIRECTORS

ACTIVITIES

The Perrot Duval Group aims to be solid, dynamic, profitable and active in future-oriented market niches.

Its growth is achieved both organically and through acquisitions.

To date, Perrot Duval Holding S.A. has oriented its investments as follows:

• the automation of processes used in the manu- facture of chemical and pharmaceutical products. This is the domain of the subsidiary Füll Process S.A.,
  100% owned (52% of consolidated sales as of
  31 October 2023).

The Füll Division provides fully automated systems and components for dispensing and safety that improve or simplify certain manufacturing processes for chemicals - such as paints, printing inks, food and cosmetics - and pharmaceuticals. As of March 2021, its products and services address both production and laboratory applications (see page 5),

• the decorative cosmetic chemistry, more par- ticularly in the field of nail gels and lacquers. This is the core business of the 100% owned subsidiary Polystone Holding S.A. which acquired two compa- nies in Germany and France on 1 October 2021 (48% of consolidated sales as of 31 October 2023).

Polystone products are mainly intended for international wholesalers, but also for professional studios. The continuous development and adaptation of the products meet the high quality requirements of this industry (see page 6).

THE FÜLL PROCESS GROUP - (OWNED 100%)

«PROCESS AUTOMATION» SEGMENT

First half year results - development in line with forecasts

The Füll Group's market beats to the rhythm of the uncertain economic situation in Europe, the heart of the Group's activities. This can be seen in the pace of order intake in the first half of the year: a growing number of customer inquiries and projects, but investment decisions postponed to a later date and pressure on the selling prices of Füll plants at all times.

The first half of 2022/23 had given way to a period of
catching up on industrial projects after the period of
restrictions resulting from the effects of Covid-19. The
first six months of the current year have been marked
by investor caution and uncertainty about the future,	5

and by a financial environment that has become significantly less favorable to industrial investment.

Sales of the Füll Group amounted to 4.5 million CHF, up 60% on the previous year (2.8 million CHF). The reason for this is the high volume of work in progress at 30 April 2023, the vast majority of which was delivered between May and October 2023.

The interim EBIT (earnings before interest and taxes) loss of 1.0 million CHF at the end of the first half of the 2023/24 financial year (loss of 0.6 million CHF a year earlier) is explained, at this point in the year, by a lower gross margin (of - 0.2 million CHF) and additional costs (personnel and trade fair participation - prohibited during the Covid-19 period) of

0.5 million CHF compared with the situation at 31 October 2022.

Report of the Board of Directors

Half-year report 2023/24

REPORT OF THE BOARD OF DIRECTORS

CHF 1 000	1st half-year	1st half-year
	23/24	22/23
Order intake	3,728	5.969
change versus
previous year	-37.5%	54.0%
Net sales	4,450	2.780
change versus
previous year	60.1%	-46.6%
EBITDA	-816	-335
as % of net sales	-18.3%	-12.1%
Depreciation and
amortisation	-163	-237
EBIT	-979	-572
as % of net sales	-22.0%	-20.6%
Employees (full time
equivalent)	44	41

6

Outlook of the Füll Division

The first half of the year was marked by a drop of 38%

in order intake to 3.7 million CHF. The vast majority of these orders will be delivered in the second half of

the current year. The order book amounted to a total of 5.0 million CHF at 31 October 2023 (compared with 6.8 million CHF a year earlier).

On the other hand, sales (4.5 million CHF) were higher than at 31 October 2022 (2.8 million CHF).

Provided that deadlines at all levels can be maintained, the sales forecast for the 2023/24 financial year, drawn up in July 2023, will be exceeded (9.5 million CHF vs. 9.0 million CHF).

The Füll Group now offers a broader range of products than in previous years. The solutions it offers its customers are based on the work and developments of its three constituent companies. The sales efforts

made in the first half of the year, which enabled the

Group to make a name for itself and participate regularly in more tenders issued by its customers, are slowly bearing fruit.

While the traditional activities of Füll Systembau GmbH and Tecos Bruhin AG (dosing systems for the production of liquids and pastes) are faring much better in the current financial year, resulting in increa-

sed sales, the same cannot be said of the laboratory dosing activities of Füll Lab Automation GmbH.

The latter's market is more focused, competition weaker, but the number of projects - often in the millions - more tenuous, with more stringent decision -making processes. At the moment, there are more projects ready to be ordered by customers than

there were a few months ago, but they are slow in coming to fruition, often for financial reasons, but never for reasons of industrial justification.

THE POLYSTONE GROUP - (OWNED 100%)

«CHEMICAL COSMETICS» SEGMENT

First half year results - temporary decline in order intake

The first few months of the year saw a 10% contraction in sales to 4.0 million CHF, and a 19% drop in order intake to 4.1 million CHF, compared with the same period last year. There are two reasons for this temporary decline.

Firstly, the end of the Covid ban had freed up a large volume of orders, both for the market and its users, and to replenish Polystone customers' inventories. This catch-up effect did not occur in the first half of the 2023/24 financial year.

Half-year report 2023/24

Report of the Board of Directors

REPORT OF THE BOARD OF DIRECTORS

Secondly, the conformity procedures for some of Polystone's products have taken longer than expected.

The components used in the Polystone Group's products are regularly tested for compliance with applicable legislation and regulations. Some components have to be replaced, which involves redefining the

recipes that contain them and obtaining customer acceptance. These procedures are complex and slow. As a result, orders for certain products could not be accepted by Polystone in the first half, but were

carried over to the second half.

CHF 1 000	1st half-year	1st half-year
	23/24	22/23
Order intake	4,097	5,044
change versus
previous year	-18.8%	323.9%
Net sales	4,048	4,504
change versus
previous year	-10.1%	423.7%
EBITDA	722	1,021
as % of net sales	17.8%	22.7%
Depreciation and
amortisation	-408	-456
EBIT	314	565
as % of net sales	7.8%	12.5%
Employees (full time
equivalent)	59	65

Gross margin remained at a slightly lower level, but lower overheads offset this effect. The EBIT (earnings before interest and taxes) interim result of 0.3 million CHF at the end of the first half of the 2023/24 financial year (0.6 million CHF a year earlier) reflects the

decline in sales over the period.

Outlook of the Polystone Division Polystone bases its growth on sales of UV gels for nails (85% of sales), tattoo inks (10%) and colors for permanent make-up (5%). For the time being, the company only caters to professional customers (B to B), but has continued its efforts to develop products for the B to C segment, where volumes are higher, but margins lower.

It is also banking on its tattoo inks, for which it is fully compliant with newly applicable European regu- lations. It has considerably expanded its color palette. Initial orders (several hundred thousand francs) are encouraging.

Finally, the company took its first steps towards in-
ternationalizing its sales and marketing activities by
participating in a trade fair in Dubai. Requests for the
development of new products were numerous.	7

With an order backlog of 1.2 million CHF at 31 October 2023 (1.6 million CHF a year earlier), and based on the catch-up of products brought up to standard and the launch of new product lines, the Polystone Group should exceed sales of 9.0 million CHF, slightly down on its July 2023 forecast.

Report of the Board of Directors

Half-year report 2023/24

CONSOLIDATED BALANCE SHEET

	CHF 1,000	Note	31.10.23	30.04.23
	Assets
	Cash and cash equivalents	5,7	3,463	4,732
	Trade accounts receivable		981	1,238
	Other short-term receivables		1,901	1,564
	Inventories	8	5,018	6,190
	Prepayments and accrued income		494	265
	Total current assets		11,857	13,989
	Financial assets (loan to related parties)		151	151
	Tangible fixed assets		6,528	6,947
	Intangible assets		490	552
	Total non-current assets	9	7,169	7,650
	Total assets		19,026	21,639
	Liabilities
	Interest-bearing current financial liabilities	5	333	612
	Trade accounts payable		635	657
8	Other current liabilities	10	4,263	4,070
	Accrued liabilities and deferred income		915	1,016
	Short-term provisions		479	611
	Provision for income taxes		333	369
	Total current liabilities		6,958	7,635
	Interest-bearingnon-current financial liabilities	5	188	211
	Long term provisions		167	172
	Total non-current liabilities		355	383
	Total liabilities		7,313	8,018
	Equity
	Share capital		6,725	6,725
	Reserves from capital contribution		385	519
	Accumulated Profits		5,627	7,238
	Currency translation differences		-1,024	-861
	Total shareholders' equity		11,713	13,621
	Total liabilities and shareholders' equity		19,026	21,639

Half-year report 2023/24

Consolidated balance sheet

CONSOLIDATED INCOME STATEMENT

CHF 1,000		1st half-year	1st half-year
		23/24	22/23
Net sales from goods and services	1	8,498	7,284
Other operating income		156	85
Cost of materials		-2,846	-2,991
Change in inventories (work in progress & finished goods)		-736	1,528
Personnel costs		-3,851	-3,685
General and administrative costs		-582	-551
Sales costs		-289	-178
Other operating expenses		-1,052	-1,017
Depreciation on tangible assets		-465	-517
Amortisation on intangible assets		-112	-182
Operating result (EBIT)		-1,279	-224
Financial income		0	0
Financial expenses		-187	-176
Financial result		-187	-176
Loss before taxes		-1,466	-400
Income tax		-11	-191
Net loss		-1,477	-591

EARNINGS PER SHARE FOR

SHAREHOLDERS

CHF		23/24	22/23
Undiluted/diluted earnings per share for shareholders
Profit (+)/loss (-) (CHF) per bearer share	2	-10,98	-4,39
	Diluted	-10,98	-4,39
Profit (+)/loss (-) (CHF) per registered share	2	-2,20	-0,88
	Diluted	-2.20	-0,88

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Consolidated Income Statement

Half-year report 2023/24

CONSOLIDATED CASH FLOW STATEMENT

	CHF 1,000		1st half-year	1st half-year
	Indirect method with cash and cash equivalents		23/24	22/23
	Net loss		-1,477	-591
	Depreciation on tangible assets		465	517
	Amortisation on intangible assets		112	182
	Other non-cash items		-203	-335
	Change in provisions		-173	-44
	Change in trade accounts receivable		257	250
	Change in inventories	8	1,172	-2,060
	Change in other current assets		-566	72
	Change in trade accounts payable		-22	45
	Change in other current liabilities		92	619
	Cash flow used in operating activities		-343	-1,345
	Investment in financial assets		0	-150
	Investments in tangible fixed assets		-221	-108
	Investments in intangible assets		-16	-112
10
Disposal of intangible assets		0	74
	Cash flow used in investing activities		-237	-296
	Change in current financial liabilities		-279	-175
	Change in non-current financial liabilities		-23	-28
	Distribution from the capital contribution reserves		-134	-269
	Dividend paid		-134	-269
	Cash flow from/used in financing activities		-570	-741
	Currency translation differences on cash and cash equivalents		-119	-39
	Change in cash and cash equivalents		-1,269	-2,421
	Cash and cash equivalents at the beginning of the year		4,732	8,179
	Cash and cash equivalents at the end of the half-year		3,463	5,758
	Total cash and cash equivalents		3,463	5,758
	Change in cash and cash equivalents		-1,269	-2,421

Half-year report 2023/24

Consolidated Cash Flow Statement