Business Update of the Elma Group related to the Covid-19 Pandemic

CH-Wetzikon, June 19, 2020 - The Elma Group held up well in the midst of the economic turmoil associated with the Covid-19 pandemic. Secured liquidity and a solid balance sheet enable Elma to manage this unprecedented time.

The current corona pandemic is obviously affecting Elma's global business. Some customers have already reduced their capacities. As a consequence, Elma also had to adjust its production capacities and introduced partially short-time work. Elma reacted quickly to the development with a package of measures and thus prevented interruption of production over a longer period of time.

The corona pandemic has caused delays in various projects and, in some cases, postponed customer orders. Nevertheless, both order income and net sales were kept at a solid level in the first five months of 2020, albeit slightly below the previous year. The continuation of essential business areas approved by the various country governments has led to constant demand and a solid order income, especially in the defense industry in the US and the UK. The individual product lines were also able to benefit from increased demand in the medical sector, especially in Europe, which led to a good load for a short period of time. Production was largely maintained with strict protective measures during the time of the "lockdown" enforced in different countries. Order income and sales developed well in the Asia region. Elma was already faced with weaker demand, especially in China, at the beginning of 2020. However, business activity in China picked up earlier after the limitations of the corona pandemic than in other regions.

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Contacts:

Elma Electronic AG
Hofstrasse 93
8620 Wetzikon

Thomas Herrmann Edwin Wild
CEO Elma Group CFO Elma Group
Tel. +41 44 933 43 04 Tel. +41 44 933 42 45
[email protected]      [email protected]

About Elma
Elma Electronic is a global manufacturer of electronic packaging products for the embedded systems market – from components, backplanes, power supply solutions, storage boards and chassis platforms to fully integrated systems. To ensure our integrated solutions are optimized to our customers’ needs, Elma partners with leading board manufacturers in the industry. Elma also provides enclosure solutions and rotary switches for demanding applications for electronic companies. The company has a broad base of proven standard products which can be tailored to individual applications: Elma offers services from the initial concept to volume production. Elma’s reliable solutions, flexibility, and design expertise are key reasons why the leading companies in the world choose Elma time and again.
Disclaimer
This communication contains statements that constitute “forward-looking statements”. In this communication, such forward-looking statements include, without limitation, statements relating to our financial condition, results of operations and business and certain of our strategic plans and objectives. Because these forward-looking statements are subject to risks and uncertainties, actual future results may differ materially from those expressed in or implied by the statements. Many of these risks and uncertainties relate to factors which are beyond Elma’s ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behavior of other market participants, the actions of governmental regulators and other risk factors detailed in Elma’s past and future filings and reports and in past and future filings, press releases, reports and other information posted on Elma Group companies’ websites. Readers are cautioned not to put undue reliance on forward-looking statements, which speak only of the date of this communication. Elma disclaims any intention or obligation to update and revise any forward-looking statements, whether as a result of new information, future events or otherwise.