<strong>Departure into the future</strong> <ul><li><strong>In the 2020 financial year, the MCH Group laid the foundation for successfully coping with the Covid-19 situation and corporate development.</strong></li></ul> <ul><li><strong><strong><strong>With a strengthened capital structure, shareholder base and corporate management, the implementation of the strategy will continue to be intensively promoted.</strong></strong><br/></strong></li></ul> <ul><li><strong>Although business activities largely came to a standstill in many areas in 2020, sales of CHF 188 million were achieved. The aim is to return to the level of 2019 in 2022.</strong></li></ul>
Despite extremely difficult circumstances due to the Covid-19 pandemic, the MCH Group laid the foundation for the path to a successful future in the 2020 financial year. With the capital increases, the entry of Lupa Systems and the renewal of the board of directors, the capital structure, the shareholder base and the company management have been strengthened. In parallel to the operational measures to cope with the Covid-19 situation, numerous innovative projects have been developed and successfully implemented. Preparations for the time after the pandemic are in full swing.
Secure continuity of the company
Of course, the negative financial consequences of the Covid-19 pandemic could not be compensated. Nevertheless, it is remarkable that the MCH Group was able to achieve an operating income of CHF 188.0 million in the 2020 financial year. However, this is CHF 257.2 million or almost 60% below the previous year. The operating result before interest, taxes, depreciation and amortization (EBITDA) is CHF -45.1 million (previous year CHF 22.1 million), the operating result (EBIT) is CHF -66.1 million (previous year CHF -2.7 million). The annual loss amounts to CHF -72.2 million (previous year CHF -9.9 million).
Cash and cash equivalents amounted to CHF 130.1 million at the end of the 2020 financial year, which means that the company will continue to exist beyond the current financial year. However, despite the inflow of funds of CHF 71.1 million as part of the capital increase, they decreased by CHF 8.2 million compared to the previous year. As of December 31, 2020, equity amounted to CHF 67.3 million, with an equity ratio of 16.8%.
At the moment, it can be expected that the framework conditions will only improve in the second half of 2021 and will normalize for 2022. The MCH Group must therefore expect another substantial loss for the 2021 financial year, although this will be significantly smaller than in 2020. Reaching the breakeven point will therefore be postponed from the 2021 financial year to the 2022 financial year, in which the 2019 level will be targeted again.<!-- sh_cad_5 --> <strong>Accelerating the transformation</strong> "The implementation of the strategy of developing future-oriented experience platforms and marketing solutions will continue to be pushed," explains Ulrich Vischer, Chairman of the Board of Directors. "The process of further strategic development with the involvement of the new strategic partner has been initiated. The aim is to further accelerate the transformation and the break-even point. The company will benefit from international experience, industry knowledge and innovative strength that will also be available with the renewal Board of Directors to be introduced. "<!-- sh_cad_6 --> "We believe in the future of live events, especially in their connection with digital elements," emphasizes Group CEO Beat Zwahlen. "And we are convinced of a successful future for our company - of our business model, our strategy, our strong brands and our innovative strength. Last year we created a strong basis to emerge stronger from the Covid-19 situation and the promising development potential in to implement continuous growth and stable profitability. "<!-- sh_cad_7 --> <strong>Proposals to the General Assembly on April 28, 2021</strong> The Board of Directors will propose to the Annual General Meeting on April 28 that no dividend be paid out.<!-- sh_cad_8 --> The Board of Directors will submit the following nominations to the Annual General Meeting on April 28, 2021: Andrea Zappia (Chairman), Markus Breitenmoser, Marco Gadola, Eleni Lionaki, James R. Murdoch and Jeffrey Palker. The Board of Directors, which has now been reduced to nine members, also includes Christoph Brutschin, Dagmar Kamber Borens and Balz Hösly as delegates of the Canton of Basel-Stadt and the Canton and City of Zurich.<!-- sh_cad_9 --> The incumbent President Ulrich Vischer and the members Hans-Kristian Hoejsgaard and Andreas Widmer will step down from the Board of Directors at the Annual General Meeting on April 28, 2021.<!-- sh_cad_10 --> <!-- sh_cad_11 --> <strong>Note on the Ordinary General Meeting on April 28, 2021</strong><br/>Personal participation on site is not possible due to the current situation in connection with the Covid-19 pandemic. In order to protect the health of shareholders and employees, the Board of Directors has decided that shareholders' rights can only be exercised by authorizing the independent proxy. The invitation with the agenda and motions as well as the necessary information for exercising shareholder rights will be sent and published on March 31, 2021.<!-- sh_cad_12 --> <strong>Contact for the media:</strong><br/>MCH Group AG<br/>Corporate Communications<br/>Christian Jecker<br/>+41 58 206 22 52<br/>[email protected]<br/>www.mch-group.com<br/><!-- sh_cad_13 --> <img class="__GNW8366DE3E__IMG" src="https://www.globenewswire.com/newsroom/ti?nf=MTAwMDQ3NDQxNCM0MDA5MDAzMjQjMjAwMDI4Nw==" width="1" height="1"/> <br/><img class="__GNW8366DE3E__IMG" src="https://ml-eu.globenewswire.com/release/track/b57d4d0c-37ac-4c89-bbb4-c21a886c4f99" referrerpolicy="no-referrer-when-downgrade" width="1" height="1" "/> </div></a>