Standard Profil - rotating

Standard Profil:

- We expect to initiate on the name on Tuesday. The company has been suffering from low volumes due to chip shortages at the OEMs and has seen raw material prices rise substantially at the same time. The long-awaited s.s. RCF has not yet closed but has been agreed, which should help to cover requirements over the year. We are modelling tight cash flows, which the company aims to exceed with cost savings packages, the details of which we do not have, however.

- All in all we have confidence in management and the process has been going in the right direction. The RCF affords management sufficient time to find sufficient cost savings for a balanced cash flow in 2023.

- We see sufficient bonds offered at 83.5 c/€ and think they might trade sideways for a while until OEM volumes lend them fantasy - which should be before the company itself shows material improvement.

- We are buying 5% of NAV.