// Ad hoc announcement (Art. 17 MAR)

Change in forecast for the 2022 financial year

2022: Moderately lower guidance due to war in Ukraine

2021: Preliminary result largely within forecast corridors

2022 Annual General Meeting: stable dividend pay-out planned

The Management Board and employees of edding AG are aghast at the war in Ukraine. Effects on edding's sales revenue and financial position are to be expected with reasonable certainty, especially as there are already reports of Hermes coverage for exports to Russia being withdrawn and Russian banks being excluded from the Swift system.

We are therefore revising the guidance for the 2022 financial year that we published in our ad hoc announcement on 17 December 2021: According to this, the edding Group now expects Group EBIT in accordance with IFRS to be between EUR 2.0 and 5.0 million in 2022 (previously EUR 3.0 to 6.0 million). Group sales revenues are now expected to be in a range of EUR 145.0 to 160.0 M (previously EUR 148.0 to 163.0 M). The net profit for the year in the individual financial statements of edding AG under German commercial law is expected to be between EUR 0.5 and 3.5 million (previously: EUR 1.0 to 4.0 million).

According to preliminary figures, Group sales revenue of EUR 148.6 M (previous year EUR 125.7 M) was achieved in the 2021 financial year. This is just above the recently announced guidance range of EUR 133.0 to 148.0 M; the increase is largely due to the recovery from the effects of the COVID 19 pandemic. The Group's operating result according to IFRS (EBIT) - subject to the final result of the audit of the consolidated financial statements - is at EUR 6.9 M 15.2 % below the previous year (EUR 8.1 M); here the forecast corridor was EUR 5.0 to 9.0 M. The decline particularly results from the unscheduled depreciation of goodwill. The net income for the year in the individual financial statements of edding AG according to German commercial law amounts to EUR 5.2 M (previous year EUR 4.2 M); this is above the last guidance of EUR 0.5 to 3.5 M due to a one-off effect from the release of a pension provision (ad hoc announcement of 7 December 2021).

The Management Board will propose to the Annual General Meeting an unchanged dividend of EUR 1.84 per preference share and EUR 1.80 per ordinary share.

About edding AG: Founded in Hamburg in 1960, edding offers durable, high-quality products and solutions for private and commercial use under the brands edding, Legamaster and Playroom. The portfolio includes markers and writing instruments, visual communication products such as flipcharts, whiteboards and e-screens, innovative digital applications as well as tattoo ink and nail polish. The company's fundamental values embrace responsibility towards the environment and society. edding wants to empower people to express their personality, ideas and thoughts and make them visible on a wide variety of surfaces.  

Explanation of EBIT as an alternative performance indicator: EBIT is the abbreviation for “earnings before interest and taxes”. Total output less cost of materials, personnel expenses and depreciation and amortisation (including rights of use within the meaning of IFRS 16), plus other operating income and less other operating expenses. EBIT is the most important key figure for profitability management in the edding Group. No adjustment has been made for any extraordinary income or expenses.

Ahrensburg, 28 February 2022
edding Aktiengesellschaft
The Management Board

Contact person

Sabrina Lindemann

edding AG
Bookkoppel 7
D-22926 Ahrensburg

+49 (0)4102 808-203