DGAP-Adhoc: H&R GmbH & Co. KGaA: Preliminary figures for

H&R GmbH & Co. KGaA / Key word(s): Preliminary Results/9-month figures 17.10.2016 12:49 Disclosure of an inside information according to Article 17 MAR, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- H&R KGaA: Preliminary figures for the third quarter of 2016 - Compared to the first nine months of 2015, operating income (EBITDA) increased significantly to EUR 79.5 million - Earnings per share grew by approximately 30% to EUR 1.05 - Once again, the strongest earnings momentum came from the Refining segment - Management confirms most recent earnings forecast for 2016 Salzbergen, 17 October 2016. The positive business performance of H&R KGaA (ISIN DE0007757007) also continued through the end of September 2016. Based on preliminary calculations, consolidated operating income (EBITDA) for the third quarter rose to EUR 25.1 million, around 3.7% higher than the prior- year figure (Q3 2015: EUR 24.2 million), which was also positive and which, in addition, benefited from special effects. EBIT stood at EUR 16.7 million - exactly the same level as in the third quarter of 2015. The other earnings indicators also reflected the company's solid profitability in the third quarter of 2016. The Group reported earnings before taxes (EBT) of EUR 14.3 million for the third quarter of 2016 (Q3 2015: EUR 13.6 million); at EUR 11.3 million, net profit to shareholders also exceeded the prior- year figure (Q3 2015: EUR 10.9 million). A year-on-year comparison shows that third-quarter sales were almost unchanged: in the third quarter of this year, H&R generated EUR 240.2 million of sales revenues (Q3 2015: EUR 240.9 million). According to preliminary figures, for the first nine months of 2016 as a whole, the company's operating income (EBITDA) increased by almost 22.0% to EUR 79.5 million (first nine months of 2015: EUR 65.3 million). EBIT amounted to EUR 55.7 million, a 30.4% increase over the prior-year period (first nine months of 2015: EUR 42.7 million). For the first nine months as a whole, pre-tax earnings (EBT) improved by 40.4% to EUR 48.0 million (first nine months of 2015: EUR 34.2 million). Net profit to shareholders increased by 29.2% to EUR 37.6 million (first nine months of 2015: EUR 29.1 million). As a result, H&R KGaA generated earnings per share of EUR 1.05, including EUR 0.32 for the third quarter of 2016 (first nine months of 2015: EUR 0.81; Q3 2015: EUR 0.30). Due to prices of raw materials, sales revenues of EUR 705.3 million were again lower than the prior-year figure (first nine months of 2015: EUR 765.6 million). A significant contribution to the improved earnings situation came from the ChemPharm Refining segment, where EBITDA increased by around 33% to EUR 54.9 million (first nine months of 2015: EUR 41.3 million), EUR 15.9 million of which was generated in the third quarter of 2016 (Q3 2015: EUR 12.8 million). Based on lower prices for raw materials, the segment's sales revenues declined by 11.5% to EUR 427.0 million (first nine months of 2015: EUR 482.6 million). Of this amount, EUR 143.3 million was generated during the third quarter of 2016 (Q3 2015: EUR 147.0 million). The key factors behind the positive results were strong demand from our customers and the stable trend in margins for our primary and by-products. The international business included in the ChemPharm Sales segment also reported a significant improvement in operating income to EUR 26.3 million for the first nine months of this year (up 5.2%; first nine months of 2015: EUR 25.0 million). However, the figure for the third quarter of 2016 alone, EUR 9.6 million, was 6.8% lower than in the prior-year period (Q3 2015: EUR 10.3 million). Between January and September of 2016, sales revenues were somewhat more restrained, at EUR 242.6 million (a decrease of 1.9% from EUR 247.4 million in the first nine months of 2015); by contrast, sales increased 3.2% to EUR 84.7 million in the third quarter of 2016 (third quarter of 2015: EUR 82.1 million). The Plastics segment generated positive EBITDA for both the third quarter (EUR 1.1 million) and the first nine months (EUR 2.0 million) of 2016 (Q3 2015: EUR -0.5 million; first nine months of 2015: EUR -0.2 million). Overall, sales revenues were stable at EUR 14.2 million in the third quarter and EUR 42.5 million for the first nine months of 2016 (Q3 2015: EUR 14.0 million; first nine months of 2015: EUR 45.8 million). During the third quarter of 2016, operating cash flow jumped by nearly 65.0% to EUR 22.7 million (Q3 2015: EUR 13.8 million), while free cash flow increased by around 15.0% to EUR 11.6 million (Q3 2015: EUR 10.1 million). Due to an improvement in the earnings situation and lower net working capital requirements, operating cash flow likewise increased substantially from EUR 33.7 million in the first nine months of 2015 to EUR 66.9 million in the first nine months of 2016 and there was a similar increase in free cash flow from EUR 20.2 million to EUR 38.6 million. There was a moderate increase in total assets (total liabilities plus shareholders' equity) from EUR 628.8 million as of 31 December 2015 to EUR 654.6 million. Over the same period, shareholders' equity increased from EUR 287.1 million to EUR 312.1 million. As of 30 September 2016, the company's equity ratio stood at 47.7% (31 December 2015: 45.7%). All in all, the company also ended the first nine months in a positive position. Based on current information and given the continued high level of sensitivity of market quotations and product prices, management expects business performance to be slightly less dynamic through the end of 2016. At the same time, management confirms the latest increase in the EBITDA forecast published in August, to around EUR 95.0 million. The final financial figures and other information on 2016 business performance to date will be published, as planned, in a quarterly press release on 15 November 2016. Contact information: H&R KGaA, Investor Relations/Communications, Tanja Passlack Neuenkirchener Strasse 8, 48499 Salzbergen Tel.: +49 40 43218-301, Fax: +49 40 43218-390 e-mail: Tanja.Passlack@hur.com www.hur.com H&R GmbH & Co. KGaA: H&R KGaA is a specialty-chemicals company listed on the Frankfurt Stock Exchange's Prime Standard segment. It develops and manufactures crude-oil- based chemical and pharmaceutical specialty products and produces high- precision plastic parts. Forward-looking statements and forecasts: This insider information pursuant to Article 17 of the Market Abuse Regulation [MAR] contains forward-looking statements. The statements are based on the current estimates and forecasts by the Executive Board and the information available to the Board at this time. These forward-looking statements do not provide any warranty for the future developments and results contained therein. The future developments and results are dependent on a number of factors; they entail various risks and contingencies and are based on assumptions which could prove to be incorrect. We do not assume any responsibility for updating the forward- looking statements contained in this insider information pursuant to Article 17 of the MAR. 17.10.2016 The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de --------------------------------------------------------------------------- Language: English Company: H&R GmbH & Co. KGaA Neuenkirchener Str. 8 48499 Salzbergen Germany Phone: +49 (0)40 43 218 321 Fax: +49 (0)40 43 218 390 E-mail: investor.relations@hur.com Internet: www.hur.com ISIN: DE0007757007 WKN: 775700 Listed: Regulated Market in Dusseldorf, Frankfurt (Prime Standard), Hamburg; Regulated Unofficial Market in Berlin, Hanover, Munich, Stuttgart, Tradegate Exchange End of Announcement DGAP News-Service ---------------------------------------------------------------------------