H&R GmbH : confirms preliminary figures for FY 2017

Press Release

H&R GmbH & Co. KGaA publishes 2017 Annual Report

- Positive contributions by all segments again ensure a high operating income of EUR 97.9 million

- Net income of EUR 32.1 million

- Executive Board intends to propose that the Annual Shareholders' Meeting distribute a dividend of EUR 0.40 per share

Salzbergen, Germany, 21 March 2018. In financial year 2017, H&R GmbH & Co. KGaA (H&R KGaA; ISIN DE000A2E4T77) generated EUR 97.9 million (2016: EUR 101.4 million) of operating income (EBITDA - Earnings before income taxes, other financial income and expenses and depreciation, amortization, impairments and reversals of impairments of property, plant and equipment and intangible assets). Despite higher writedowns, the other earnings levels were also impressive (see the table "Key Figures for H&R KGaA). Consolidated income attributable to shareholders totaled EUR 32.1 million (2016: EUR 38.4 million), a year-on-year decrease of EUR 6.3 million - in part due to the further increase in income tax expense. Earnings per share stood at EUR 0.88 (2016: EUR 1.05). The solid earnings were generated on EUR 1.0251 billion of sales revenues, which were around 9% higher than in the previous year (2016: EUR 942.7 million). This was primarily because of the higher average price of crude oil compared to the previous year. This result means that not only is H&R KGaA again able to pay a dividend - as already announced - but that it plans to distribute the first dividend since 2011 and will propose profit-sharing of EUR 0.40 per share to the Annual Shareholders' Meeting.

All segments made positive contributions to earnings
The Chemical-Pharmaceutical Raw Materials division with its Refining and Sales segments generated EUR 98.1 million of EBITDA (2016: EUR 103.6 million), thereby making a strong contribution to consolidated EBITDA despite the global economic challenges and a one-time increase in maintenance requirements at the Hamburg refinery site. The Plastics division recovered significantly by applying cost discipline and by streamlining and focusing more on expanding the customer portfolio, thereby once again improving earnings to EUR 3.7 million (2016 EBITDA: EUR 2.6 million). EUR -3.8 million (2016: EUR -5.1 million) of consolidation effects on Group level reduced EBITDA.

Operating cash flow again positive in 2017; stable equity base
Starting from a somewhat lower consolidated net income, cash flow from operations remained strongly positive, although it declined from EUR 75.5 million to EUR 46.2 million. At the same time, higher cash outflows for capital expenditures reduced free cash flow from EUR 36.7 million to EUR -11.9 million. As of the end of financial year 2017, the balance sheet total had increased to EUR 662.6 million (31 December 2016: EUR 648.2 million). Due to the company's positive overall economic and financial situation, shareholders' equity increased to EUR 342.7 million on the balance sheet date (31 December 2016: EUR 317.4 million). The equity ratio was 51.7% (31 December 2016: 49.0%).

Outlook
The H&R KGaA with which we are "entering the race" in 2018 faces a geopolitical situation that is becoming increasingly complex for interconnected companies with international operations. It is therefore with self-confidence, but also a dose of realism, that we are drawing up our forecasts for 2018 and setting as our target an operating income (EBITDA) figure of between EUR94.0 million and EUR106.0 million.

For a complete presentation of the company's business performance, including segment reporting and the annual financial statements, H&R KGaA recommends consulting the 2017 Annual Report that will be released today.

Key Figures for H&R KGaA:

The Segments in Figures

Contact:
H&R GmbH & Co. KGaA, Head of Investor Relations / Communication, Ties Kaiser
Neuenkirchener Strasse 8, 48499 Salzbergen
Tel.: +49 40 43218-321, Fax: +49 40 43218-390
Mail: ties.kaiser@hur.com
www.hur.com

H&R GmbH & Co. KGaA:
H&R GmbH & Co. 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 press release 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 should not be interpreted as a guarantee that the projected future developments and results contained therein will materialize. The future developments and results are dependent on a number of factors that 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 press release.