H&R GmbH : with improved figures for third quarter and nine-month period 2017

Insider information pursuant to Article 17
of the Market Abuse Regulation [MAR]

H&R GmbH & Co. KGaA: Preliminary figures for the third quarter of 2017

- Compared to the first nine months of 2016, operating income (EBITDA) improved to EUR80.8 million

- Total sales revenues of EUR 784.9 million driven by significant increases across all segments

- Refining segment makes up for weaker earnings in previous quarters; other segments report solid performance

Salzbergen, 26 October 2017. The positive business performance of H&R GmbH & Co. KGaA (abbreviated as H&R KGaA; ISIN DE000A2E4T77) also continued through the end of September 2017. According to preliminary figures, consolidated operating income (EBITDA = consolidated earnings before income taxes, other financial income and expenses and depreciation, amortization, impairments and reversals of impairments of fixed assets and intangible assets) increased by 11.2% year-on-year from EUR25.1 million in the third quarter of 2016 to EUR27.9 million in the third quarter of 2017. The figure for the third quarter of 2017 was also higher than the figures for the first and second quarters, respectively. EBIT rose by 15.6% to EUR19.3 million (Q3 2016: EUR16.7 million). The other earnings figures also improved in the third quarter of 2017: the Group reported earnings before taxes (EBT) of EUR17.2 million in the third quarter of 2017 (an increase of 20.3% from EUR14.3 million in Q3 2016); at EUR12.5 million, net profit to shareholders also significantly exceeded the prior-year figure (Q3 2016: EUR11.3 million, an increase of 10.6%). Due to higher prices for raw materials, H&R's sales revenues increased by 7.1% year-on-year, from EUR240.2 million in the third quarter of 2016 to EUR257.2 million in the third quarter of 2017.

According to preliminary figures, for the first nine months of 2017 as a whole, the company's operating income (EBITDA) increased by around 1.6% to EUR80.8 million (first nine months of 2016: EUR79.5 million). Higher depreciation associated with the increase in capital expenditures led to a moderate decrease in EBIT, from EUR55.7 million in the first nine months of 2016 to EUR54.4 million in the first nine months of 2017. For the first nine months as a whole, pre-tax earnings (EBT) were virtually unchanged at EUR47.6 million (first nine months of 2016: EUR48.0 million). Following several quarters of improvement in the company's business situation, the resulting increase in income tax expenses impacted the consolidated net income attributable to shareholders, which decreased from EUR37.6 million in the first nine months of 2016 to EUR33.9 million in the first nine months of 2017 despite a slight improvement in the third quarter. Overall, H&R KGaA generated earnings per share of EUR0.94. Due to prices of raw materials, sales revenues of EUR784.9 million were again higher than the prior-year figure (first nine months of 2016: EUR705.3 million).

With EUR53.4 million of EBITDA (first nine months of 2016: EUR54.9 million, a 2.7% decrease), the ChemPharm Refining segment was a major contributor to earnings; the figure for the third quarter of 2017, EUR20.3 million, was higher than the prior-year amount (Q3 2016: EUR15.9 million) and partially made up for the slightly weaker figures in the first two quarters. Due to prices of raw materials, segment sales revenues increased by 11.5% to EUR475.9 million (first nine months of 2016: EUR427.0 million). Of this amount, EUR157.3 million was generated during the third quarter of 2017 (Q3 2016: EUR143.3 million). The key factors behind the positive results were strong demand from our customers and the stable trend in sales volumes of our primary and by-products. The international business included in the ChemPharm Sales segment reported a slight improvement in operating income to EUR26.9 million for the first nine months of this year (up 2.3%; first nine months of 2016: EUR26.3 million). On a quarterly basis, however, the figure for the third quarter of 2017 (EUR7.9 million) dropped by 17.7% year-on-year (Q3 2016: EUR9.6 million), mainly because of the decrease in momentum in Asia that we had been expecting since mid-year. Between January and September of 2017, sales revenues totaled EUR271.1 million (an increase of 11.7% from EUR242.6 million in the first nine months of 2016); the third quarter of 2017 contributed EUR87.6 million of that amount (a 3.4% increase from EUR84.7 million in the third quarter of 2016). The Plastics segment generated positive EBITDA for both the third quarter (EUR0.8 million) and the first nine months (EUR3.4 million) of 2017 (Q3 2016: EUR1.1 million; first nine months of 2016: EUR2.0 million). Overall, sales revenues were stable at EUR14.2 million in the third quarter and EUR44.8 million for the first nine months of 2017 (Q3 2016: EUR14.2 million; first nine months of 2016: EUR42.5 million).

Since mid-year, cash flow from operations (EUR5.0 million) has recovered considerably and at the end of the first nine months of 2017 stood at EUR44.7 million (first nine months of 2016: EUR66.9 million). Free cash flow (first half of 2017: EUR-17.4 million) recovered to EUR6.9 million. On a quarterly basis, operating cash flow increased from EUR22.7 million in the third quarter of 2016 to EUR39.7 million in the third quarter of 2017 and free cash flow improved from EUR11.6 million to EUR24.3 million. Total assets rose 2.8% from EUR648.2 million at 31 December 2016 to EUR666.5 million at the end of the third quarter of 2017. Over the same period, shareholders' equity increased by 8.3% from EUR317.4 million to EUR343.6 million. As of 30 September 2017, the company's equity ratio stood at 51.6% (31 December 2016: 49.0%).

Although the results for the first nine months suggest another increase in the latest guidance (EBITDA of EUR96.0 million to EUR101.0 million), for the time being, H&R is standing by its expectations: in Asia, especially, the outlook could darken substantially under the pressure of the conflict between the U.S. and North Korea. Europe and Germany will have to wait to see how the recent elections will affect future economic and political decisions. While remaining cautious, the company nevertheless is optimistic as it enters the final quarter.

Contact information:
H&R GmbH & Co. KGaA, Investor Relations/Communications, Ties Kaiser
Neuenkirchener Strasse 8, 48499 Salzbergen
Tel.: +49 40 43218-301, Fax: +49 40 43218-390
E-mail: ties.kaiser@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 Management Team and the information available to it 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.