Working capital to be increased for growth and supply chain management. Sales grow due to high new order volume.
UET United Electronic Technology AG (ISIN: DE000A0LBKW6), Eschborn, plans to expand the current round of financing, which was originally intended to be used to refinance existing debt financing.
In the 2022 fiscal year, sales have grown currently by around twelve percent, and order intake has even increased by 25 percent. This leads to a significantly larger order backlog that is around 45 percent higher than the value in the comparable period of the previous year.
The limited availability of semiconductor components is leading to a backlog in deliveries, which is currently hampering stronger sales growth. In order to be able to use all the market opportunities, the warehouse for components has been doubled in the past twelve months. This requires the expansion of working capital for supply chain management.
The planned financing measures can be implemented in one or several steps. The Annual General Meeting will be convened presumably at the end of 2022, allowing the shareholders to take the respective resolutions if required.
In the past nine months the UET Group has implemented development projects for all fiber-based gigabit broadband transmission systems. They offer the possibility of having key components substituted by alternative parts. These measures help to improve the ability to deliver and secure commercial purchasing options.
The procurement costs have risen both for the original components and for the alternatives. Part of the cost increase is borne by customers through price increases.
Due to rising energy costs and higher requirements to expand network security in telecommunications networks as part of the critical infrastructure, the UET Group expects sustained demand in the coming years – even if Europe would go into recession.
In particular, the energy efficiency of fiber optic broadband will be an investment driver in the years to come. According to a study by the Federal Environmental Agency, the pure transmission path via 5G mobile communications needs around seven times more energy compared with fiber to the home, the fiber optic connection to the house. Even 20 times more energy are required for 4G mobile communications.
In the area of energy efficiency, already a field of expertise for the UET Group, investments will be increased over the next few years. “The Internet and telecommunications industry has a unique opportunity to make a key contribution to the greening of the economy. With sustainable, intelligent products and solutions, we want to help reduce greenhouse gas emissions in the future,” says Werner Neubauer, CEO of UET AG. “Our investments will help to achieve the goal of climate neutrality faster, both within the company and for the product portfolio.” The goal, he said, is to make digitization and the associated expansion of the communications infrastructure climate-friendly and CO2-neutral in the future.
Contact:
UET United Electronic Technology AG
Frankfurter Str. 80-82
D-65760 Eschborn
Sebastian Schubert
Investor Relations
Tel: + 49 (0) 6196 777755-0
Email: investor@uet-group.com