Good day, and a warm welcome to today's Earnings Call of the Aumann AG. Following the publication of the first half-year figures of 2024. The CEO, Mr. Sebastian Roll, and the CFO, Mr. Jan-Henrik Pollitt, will speak in a moment and guide us through the presentation and the results. After the presentation, we will move on to a Q&A session, in which you will be allowed to place your questions directly to the management. We're looking forward to the presentation, and with this, I hand over to you, Mr. Roll.
Yeah, good afternoon. Thanks for the kind introduction, and also a warm welcome to everyone from us. Let me briefly introduce myself. My name is Sebastian Roll, and I'm the CEO of Aumann. Joining me is my colleague, Jan-Henrik Pollitt, who is our CFO. I am pleased that you are interested in Aumann and taking part in our earnings call. In our upcoming presentation, we will give you a quick overview of Aumann, offer our perspective on current market developments, and highlight our financial performance in the first half of the year. First of all, let's refresh quickly. What sets Aumann apart? With our cutting-edge technologies, we are transforming the automotive industry. In our core business, we deliver fully automated production lines for the entire range of electromobility. We are not just a supplier; we are a reliable and innovative development partner.
Thanks to our decades of experience, all major players trust us. The who's who of the automotive industries sets the standards in the transformation on Aumann solutions. Our e-mobility segment has therefore grown by an average of 27% over the years. So let's dive into Aumann's solutions. Our portfolio range from modular and complex process solutions to large-scale production solutions. In modular solutions, Aumann offers standardized cell systems. They enable our customers to react fully flexible and cost-optimized on market demands. In addition, Aumann develops production lines for complex processes, such as winding, coating, and testing. The aim is to implement special process steps in the most efficient way. Moreover, Aumann offered customized, large-scale production solutions tailored to the unique needs of our customers. These systems are designed to generate a maximum output while ensuring high quality.
Thanks to Aumann's wide range of solutions, we can fully support different production goals of our customers. So this slide shows our transformation over the time. Aumann has progressed into a leading provider for e-mobility production solutions. This illustration showcase the drivetrain of a fully electric car, and as always said, apart from the tires, all components can be manufactured using Aumann production lines. Of course, this requires a colorful mix of competencies. Alongside our key competencies, such as assembly, automation, and joining, we also offer specialized processes like converting, winding, and testing. Let's have a look at our beginning in e-mobility. Right from the start, Aumann placed a clear focus on the e-drive unit. If we take a closer look at the e-drive unit, it becomes evident that the fundamentals of an e-motor have remained the same over the last 170 years.
However, there isn't just one single e-motor for every customer. Instead, each customer follows very different approaches in development. As a turnkey provider, Aumann offers all the latest production solutions for both stators and rotors. In addition to its existing operations, Aumann has ventured into the inverter business over the past two years. To support this new business, Aumann developed its own modular production system, perfectly suited for inverters. Now, let's shift our focus to our battery portfolio. Our growth over the year is mainly driven by our strong position in the field of battery systems. From our perspective, we benefit for two reasons. Firstly, as a pioneer in technology, Aumann provides the complete range of battery modules, battery packs, and even cell-to-X solutions… secondly, the latest design, such as the cell-to-pack design, set the highest standards for production solution and processes.
Additionally, with our converting technology, we are able to provide also production solutions for electrode manufacturing. Last but not least, we complete our portfolio in e-mobility with our activities in the field of fuel cells, a business where Aumann has been active for over 15 years. Aumann is able to offer cutting-edge production solutions, from coating and stacking all the way to final assembly. As a result, Aumann can provide tailor-made solutions across the entire value chain. So let's explore the future of electromobility. Currently, the European automotive industry is facing unexpected weak end customer demand for EVs. But this doesn't mean that e-mobility is being questioned. Our customers are fully committed to the transition towards e-mobility, and this transition, and this is important, is not reversible. Instead, the industry is adjusting the pace to better align the launch timing of new car models with the market demand.
As a result, there's a temporary slowdown in investments. Unfortunately, we also need to consider this new situation. Despite our improved financial performance, the current market conditions are reflected in the order intake of Q2. Once again, this doesn't change the fact that the transformation for our customers is far from complete, will not be reversed, and most of the transitional production capacity still needs to be converted. Now, I would like to hand over to Jan for the financial performance.
Yeah. Thank you, Sebastian, and also a warm welcome from my side. I would now like to share with you the financial figures of the first six months of 2024. Let me start with a quick overview. The revenue and earnings situation continues to develop in line with our guidance and the Q1 results. Our revenue increased by 18.9% year-over-year, and EBITDA jumps by 93% with a margin of 10.6%. After the very successful past years, this year's order intake is influenced by a challenging market environment. With EUR 130 million order intake after six months, 2024, we are 25% below the strong previous year's figure.
Nevertheless, at the end of June, we have a very comfortable order backlog of EUR 288.4 million, and our balance sheet remains strong, with EUR 117 million cash. Let us now jump into a few details. As already announced in our guidance for 2024, we see a strong development in revenue and earnings for this year. After 6 months, we can already report a significant increase in revenue from EUR 119 million to EUR 141.4 million, which means a growth of 19% year-over-year. Our profitability shows an even more significant development. EBITDA almost doubled from EUR 7.8 million to EUR 50 million, and the EBITDA margin increased from 6.5% to 10.6%.
This slide clearly illustrates the reward from the very strong and profitable order intake from the last two years. Let us now have a look at our order intake. Across segments, the half year shows a decline in order intake of 25% year-over-year to EUR 130 million. We are currently seeing, as Sebastian said, a reluctance to invest in the automotive sector for several reasons. The end customer demand for electric vehicles is weaker than expected. OEMs are still partly faced with technical or software problems and high costs. Vehicle models and platforms are currently under review, and the regulatory framework continues to be uncertain. In this challenging market environment, our e-mobility segment recorded a 16% decline in order intake year-over-year, and stands at EUR 111.8 million after six months.
This results in a slightly decreased total order backlog of EUR 288.4 million, which means a reduction of 8% year-over-year, while e-mobility order backlog is only 3% below previous year. After the record high order backlog of the past quarters, the current level is also very comfortable, both from a volume and quality perspective. Let's jump into our segments in detail. Starting with the e-mobility segment. Order intake of EUR 111.8 million in the first half of 2024 is 16% under the previous year due to the mentioned market conditions. As a result, order backlog decreased slightly by 3% to EUR 244.9 million.
However, revenue increased significantly by 29% to EUR 113.6 million, resulting in an increased EBITDA of +127% to EUR 13.2 million. Which means a five percentage point improvement of the EBITDA margin to 11.6%. Let's continue with the classic segment. Order intake decreased notably year-over-year to EUR 18.2 million, as 2023 included a large scale order. Order backlog came down to EUR 43.6 million, and revenue after six months is 27.8 million euros, slightly below previous year's level. EBITDA increased by 25% to EUR 3.6 million, which means the EBITDA margin increased by three point six percentage points to 13.1%.
By the end of June 2024, our balance sheet continues to be in an excellent shape, with an equity ratio of 57.5% and EUR 170 million cash, of which EUR 109 million are net cash. With our wide range of innovative production solutions and our solid finances, we are proving to be a strong partner for the automotive customers. For the full year 2024, we are totally on track to reach our guidance of more than EUR 320 million revenue. And moreover, after six months, 2024, we are already in the upper half of our EBITDA guidance of 9%-11%. Let me now hand over to Sebastian again.
Yeah. Thanks, Jan. So to sum up our presentation, the revenue and earnings performance is totally in line with our guidance. Revenue, as Jan said, increased by roughly 90%, and our EBITDA nearly doubled and continues in double digits. Despite our strong overall financial performance, our customers are currently adjusting the pace. This, unfortunately, is visible in our Q2 order intake. Nevertheless, based on our solid financials and our strong order backlog, we are set for 2024. We are fully booked, and we are sure that e-mobility will continue to grow. So thank you very much for your attention, and we are now happy to answer your questions.
Thank you very much for your presentation. We will now move on to the Q&A session. For a dynamic conversation, we kindly ask you to ask questions in person via audio line. To do so, please click on the Raise Your Hand button below, and if you have dialed in by phone, please use the key combination star nine, followed by star six. If you do not have the possibility to speak freely today, you can also place your questions in our chat box. And we already received three hands up. Mr. Schießl, you should be able to speak now.
Hi there. How it is going? Are you able to hear me?
Yes.
Yeah, wonderful. Mr. Roll, please, could you give us more light and more color on the quality of your order intake, please?
Yeah, honestly speaking, the quality of the order intake in the first half of the year was really excellent. Yeah. So, I mean, that means we have really a margin buffer to our reported guidance. So, honestly speaking, this was not the problem of the first half of the year. Fortunately.
And what is your expectation concerning second half of the year? Will there be some problems concerning on quality of orders?
Yeah, I mean, for sure, I mean, there is competition in the market, for sure. And I'm quite sure that our customer try to use this situation to decrease prices and everything. But once again, I think that we have a lot of unique selling points and technical advantages. So it's more or less the same story like before, that we have to fight for these kind of premium price. But I'm quite sure that not tomorrow everything is going in the totally wrong direction. Now, what we see right now are these kind of adjustment, yeah, postponements of these kind of models. But as I said, first half of the year was really excellent in terms of margin.
So do I understand you rightly, you didn't experience the cancellations of orders, don't you?
No, right now, we, we don't have any kind of cancellations in our orders. Yeah, this is, this is not the fact yet.
Okay, that's it. Thank you so far.
Thank you .
Thank you, Mr. Schießl. We have one more hand up from Mr. Aizpurua. You should be able to speak now.
Okay. Hi. Hi, everyone. My question is about the kind of current order intake run rate you expect for the next quarters. Do you feel that it will stay around EUR 50 million, EUR 50+ million, or do you expect a pickup? And if that's kind of the number you expect, do you feel—do you think that there will be, you will be able to go over your fixed costs and kind of maintain the margin or not?
Yeah. I mean, first of all, maybe I think to sum up again, so the automakers are right now cautious in their investments, yeah? There are different reasons. One, as we said, is the demand for the end customer. Additionally, and this is something I think we also have to have in mind, is the upcoming election in the United States, and also, which might be a very interesting case as well, the possibility that interest rates turn around, yeah? So that means, as a result, they are right now, our customers' conservative approach to invest in e-mobility, but nevertheless, e-mobility remains an attractive market.
I mean, this is in transformation which cannot be reversed, and I think this is important to know, and we have not seen that any kind of platform is deleted or something like this, yeah? They are now discussing different models within these platforms, and unfortunately, this has an impact on us. But nevertheless, I think there will be the time where we see again this increasing demand, yeah? So our project and acquisition list, yeah, is, I mean, is more or less on the same level like it was also last year, yeah? Maybe it's even a little bit higher, but now we have to manage this different timing of awards in these different projects, yeah? So what does it mean?
I don't expect a sudden improvement this summer, but I expect that after election, after the turnaround of the interest rates and so on, there will be a new dynamic in the market again.
Your second question, Carlos, was on the margins and the fixed costs. As Sebastian said, the first half order intake came in with very good margins. Therefore, we have an order backlog of EUR 288 million with a very good quality. And the next six months, in terms of revenue, will be even higher than the last six months in the first half of 2024. Therefore, we are growing in the second half of the year again, and therefore, we won't see a problem on the fixed costs or margin level.
Of course, it depends on the order intake in the second half of the year, and together with this information or with this information, we will then come to a new guidance for the next year. From the standpoint of today, we don't see a margin or fixed costs problem.
Okay, but let's say that you get to a revenue number of EUR 250 million, I know from next year. And even if the order intake is of good quality, like, what type of margin could you sustain at, I guess, EUR 250 million?
No, I think it's important to. I don't know if I got you right yet, but once again, I mean, 2024, profit-wise, revenue-wise, all the things is safe, yeah? And as Jan said, we are also growing in the second half of 2024, yeah? Once again, we have a very comfortable order backlog of roughly EUR 290 million, yeah? I mean, March last year, this was our record order backlog in this area, yeah, and we were all year over in this area of EUR 300 million order backlog. So, if there are upcoming order intakes in the fourth quarter, again, I mean, there are big projects in our acquisition list, yeah? It's not that these projects are out.
We have now to see when they come, yeah? Unfortunately, but right now we are still in a growing phase, and we cannot give a guidance today for 2025. I think that's sure. But I cannot see that it is given that we are decreasing, yeah.
Okay, great. Thank you. And, finally, about M&A, do you expect something new in the short-
Yeah, I mean, honestly speaking, this is something I also wanted to add, that a part of revenues in the upcoming years can also come out of M&A. For M&A, it's we have the same situation like we discussed last time. It is still part of our strategy, for sure, and it is still focused to have a more international footprint, especially to come up with a target and with an acquisition in North America.
Okay, thank you.
Thank you, Mr. Aizpurua. We have one more hand up from Kirill Chmykh. You should be able to speak now.
Yes, thank you for taking my question, and congrats on the results. So I have two questions. The first is more of a macro level. My question is, it's almost sure that the EV trend is upside on the long term, but in your view, are you expecting or waiting for a particular catalyst other than the macro conditions, such as interest rate easing, just for that trend to become better? Is there anything particular that we should be aware of? And my second question is more about the capital allocation. As you have a very strong cash position, and you may have mentioned the M&A, could you elaborate a bit more on that?
Is it the top priority for you, or in capital allocation, is there anything else that you could mention maybe? Thank you.
Yeah. I think the macro view is something we have discussed, yeah. Maybe there's one point to add, because I think for sure there are still the pressure on the Euro- especially on the European automakers, to offer attractive, attractive EVs, yeah, for the Chinese market, and this is also still valid, yeah? So I don't... I cannot imagine that this break, yeah, will be for a long time, yeah? In the more micro perspective, for sure, I mean, as you know, VW has announced to think about the different launch of models within the SSP platform, yeah?
And, as you know, for example, VW normally is taking these kind of investment plans in November each year, yeah? So for sure, we are quite sure that at that for this customer, then a lot more becomes clear, yeah? And there also we have all these discussions with other customers, and it's in individual discussions about this topic, yeah? So that means in the, yeah, in the micro view, we are very close to the customer and discuss there the upcoming projects we have in our project and acquisition list right now.
Yeah. Thank you so much.
Your second question, sorry, was based on the capital allocation. Maybe to sum up what we experienced this year so far, so we started into the year with a bit more than EUR 140 million cash. We have a good earnings situation, but spent about EUR 27 million on working capital. That's why or that was because earlier or in the last quarter of 2023, we got bigger prepayments, which are now materialized in the execution of our projects. We had another EUR 3 million on dividend payment and EUR 6 million on share buyback. So I think from my perspective, M&A, of course, is the top priority when it comes to cash allocation.
But of course, the other aspects, like dividends and share buybacks, will be also a topic, which will be discussed in the course of the year.
Thank you.
Thank you, Mr. Chmykh. In the meantime, we have received no further questions. I will hold the room for another moment. We come to the end of today's earnings call. Thank you for joining, listening, and all your questions. A big thank you also to the gentlemen for your presentation and the time you took to answer the questions. Should further questions arise at a later time, please feel free to contact investor relations or us. With this, I wish you all a lovely remaining Wednesday, and hand over again to you, Mr. Roll, for some final remarks.
Yeah. Thank you. So, we are satisfied with the first half of the year in terms of revenues and profitability. Of course, we are not happy with the current market development, but the high order backlog ensures that we will meet our guidance for 2024, and I think this is also a very important point. So thank you very much for your interest.