|   Schopfloch   |  Germany

HOMAG Group AG adjusts earnings expectations

Schopfloch, July 22, 2019 - HOMAG Group AG today adjusted its earnings forecast for the 2019 financial year. From today's perspective, earnings after taxes and before profit transfer are expected to be between EUR 42 and 46 million. Previously, HOMAG Group AG had forecast earnings after taxes and before profit transfer for 2019 above the previous year's figure (EUR 54 million).

Due to its function as a holding company, HOMAG Group AG's earnings depend on the earnings of its subsidiaries. These are determined by income from investments and profit and loss transfer agreements.

The main reason for the reassessment is that the subsidiaries of HOMAG Group AG are recording a market downturn in business with the furniture industry. Their results are burdened by declining margins due to the declining market volume. In addition, there will be a significant decline in sales in the higher-margin Chinese business and a disproportionate increase in material and personnel costs compared with sales. In the second half of the year, sales at HOMAG Group AG should be lower than previously expected.

Disclaimer

This press release contains certain statements relating to the future. Futureoriented statements are all those statements that do not pertain to historical facts and events or expressions pertaining to the future such as “believes”, “estimates”, “assumes”, “forecasts”, “intend”, “may”, “will”, “should” or similar expressions. Such future-oriented statements are subject to risks and uncertainty since they relate to future events and are based on current assumptions of the Company, which may not occur in the future or may not occur in the anticipated form. The Company points out that such future-oriented statements do not guarantee the future; actual results including the financial position and the profitability of the HOMAG Group as well as the development of economic and regulatory framework conditions may deviate significantly (and prove unfavorable) from what is expressly or implicitly assumed or described in these statements. Even if the actual results of the HOMAG Group including the financial position and profitability as well as the economic and regulatory framework conditions should coincide with the future-oriented statements in this press release, it cannot be guaranteed that the same will hold true in the future.

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