V-ZUG (VZUG) investor relations material

Executive summary

• Net sales declined 4.1% year-over-year to CHF 567.4 million due to weak market development and lower project business volumes in Switzerland and internationally.

• EBIT dropped to CHF 11.6 million (down 54.2%), with EBIT margin falling to 2.0% from 4.3% year-over-year.

• Group net result decreased 68.1% to CHF 6.8 million, reflecting the challenging environment.

• Strategic initiatives and organizational changes were implemented, including a new CEO and sharpened strategic pillars.

• Dividend proposal remains unchanged at CHF 0.90 per share, representing an 84.5% payout ratio.

Financial highlights

• EBITDA fell 19.2% to CHF 44.9 million, with EBITDA margin at 7.9% (down from 9.4%).

• Free cash flow was negative at CHF -15.4 million, compared to CHF 17.2 million prior year.

• Cash and cash equivalents declined to CHF 60.1 million from CHF 83.5 million year-over-year.

• Cash flow from operating activities: CHF 41.3 million; investing activities: CHF -56.7 million.

• Investments in future growth and innovation remained strong despite lower cash flow.

Outlook and guidance

• Board proposes a dividend and capital reserve repayment totaling CHF 0.90 per share (84.5% payout ratio).

• Mid-term targets reaffirmed: 3% annual organic growth, >10% international growth, ~10% EBIT margin, 20–40% payout ratio.

• Cautious optimism for the current year, with positive order intake in international own-brand business and momentum in the Swiss market.

• Strategic focus on growth in Switzerland, international expansion, innovation, and service excellence.