Rmig A/S

MANAGEMENT’S REVIEWThe Group’s primary activityThe Group are internationally known under the brands RMIG and MEVACO with the vision to be the world’s leading perforation company by being an innovative and sustainable supplier of perforated products.The Group’s main market is Europe where the Group serves its customers through local sales offices in 14 countries and by having 6 manufacturing facilities in 4 different countries. RMIG also sells its perforated products to customers outside Europe either as direct export or through cooperations with sales representatives, agents or distributors. RMIG perceives Europe as its home market and countries outside these markets as export markets.The business structure of the Group is organised in three business areas: RMIG Solutions, RMIG Automotive and MEVACO. Common for the three business areas is that they sell perforated products of high quality to their key customer segments. The three business areas have different business models each with focus on offering the best value for their customers.RMIG Solutions focuses on supplying premium tailor-made solutions for selected customer segments in specific industries. In most cases, the delivered products are manufactured from perforated metal with additional services including secondary operations, logistic and project management. The customers are typically larger companies within industrial wear & tear parts, durable components and building projects that demand technical advice.RMIG Automotive focuses on supplying interior and exterior grills to the automotive industry. In most cases, the grills are manufactured from perforated metal or expanded metal, formed, surface treated and mounted on a plastic carrier. The customers are typically Tier 1 or Tier 2 suppliers to the automotive OEMs (Original Equipment Manufacturers).MEVACO focuses on selling standard sheets or simple tailor-made products in an efficient and digitalised setup within an automated production flow with delivery times between 24 hours and 4 days. The customers are typically smaller metalworkers or resellers/distributors.The RMIG Group is servicing the overall market for perforation.The Group’s manufacturing facilitiesThe production facilities within the Group consist of both traditional hydraulic presses and modern technology for perforation and secondary operations. The production facilities have acquired the ISO 14001:2015 certification and RMIG keep investing in a new sustainable and safe working environment solutions.RMIG DK Ballerup (HQ)RMIG DE RaguhnRMIG SE MariestadGlobal/Export coverageSouth/Central coverage17,878 m212,815 m2RMIG UK WarringtonRMIG DE Nold (RMIG Automotive)MEVACO DE SchlierbachUK/IR local coverageAutomotive coverageMEVACO coverage3,418 m213,656 m26,118 m2Total 60,235 m2

Development within the financial yearThe Group’s revenue reached € 174 million, reflecting a 17% decrease, compared to the expected € 210 million in Annual Report of 2022. This decline is mainly atributed to the continual decrease in raw material prices throughout 2023, and decreasing customer demand influenced by the European macroeconomic and geopolitical landscape across all three business areas within RMIG. Despite these challenges, the Group successfully maintained its markets position and market share within the primary geographical markets. There has been high focus on securing earnings through customer service improvements and cost initiatives. This aligns with the strategy of the Group’s business areas, emphasising the delivery of best possible value for the various types of customers, a commitment that extends into 2024. In 2023 the Group continued the phased roll out of the MEVACO online shop, providing customers with the ability to design customised perforated products as well as ordering standard products with significantly reduced delivery times. Further initiatives in 2023 aimed at reinforcing the business areas including an ambitious investment program. Anticipated outcomes include the operationalisation of several new All Across Presses and other production equipment in 2024/2025. Additionally, a centre of excellence for the manufacturing of expanded metal has been initiated in MEVACO and will be fully operational by the end of 2024. EBITDA for the year was € 16.0 million and was affected by the lower revenue for the year but compensated by cost savings and initiatives. This resulted in an EBITDA ratio of 9.2% compared to last year’s ratio of 14.0%. The net profit for the year was € 6.8 million compared to an expected net profit of € 10-13 million and last year’s net profit of € 16.8 million, showing a direct impact of the lower EBITDA. Management finds the result and performance acceptable considering the market conditions encountered in 2023.Cash flow statementCash flow from operating activities was € 14.3 million, € 2.0 million below last year’s amount of € 16.3 million. Cash flow from operating activities was lower due to lower EBIT and compensated from lower working capital. The cash spending on investing activities was € 7.4 million, € 1.3 million higher than in 2022. Cash flows from financing amounted to € (7.2) million as a result of a dividend payment of € 6.0 million and repayment of a loan. Net Interest Bearing Debt (NIBD) was reduced to € 7.1 million and the financial leverage was 0.4x (Net interest bearing debt/EBITDA). Equity ratio increased to 58.6% from 56.2% in 2022.