Increase in revenues and profitability

At Looser Holding AG, headquartered in Arbon (Switzerland), the positive development experienced in the first three months of 2016 continued and further improved from the previous year. In the first half-year, net revenues rose from CHF 219.1 million in the prior year by 0.5 percent to CHF 220.2 million. After adjustments for the revenues of the Temperature Control segment (Single Group) included in the prior year figures, revenue growth amounted to 9.0 percent. After adjustments for currency and divestment effects, revenues increased by 6.9 percent. When compared to the previous year, the operating result (EBITDA) rose by 1.8 percent to CHF 27.0 million (prior year: CHF 26.6 million) and the EBITDA margin reached 12.3 percent (prior year: 12.1 percent). EBIT increased by 10.3 percent to CHF 14.0 million with an EBIT margin of 6.4 percent (prior year: CHF 12.7 million/EBIT margin 5.8 percent). The rise in profitability was largely supported by the Doors segment.

Consolidated net income increased markedly, i.e. by 71.3 percent, from the previous year to CHF 7.6 million (prior year: CHF 4.5 million). In addition to the rise in operating results, this was mainly due to the significant reduction in financial expenses.

Net debt decreased by CHF 30.8 million from the comparable prior year date. When compared to the year-end 2015, net debt increased by CHF 9.2 million to CHF 94.6 million. This rise was due to the seasonally low level of operating cashflow and the cash distribution from capital contribution reserves. As of June 30, 2016, the equity ratio amounted to 37.6 percent.

Coatings - signs of improvement identified

Net revenues of CHF 72.4 million (prior year: CHF 72.9 million) were generated in the Coatings segment, a decline from the prior year period by 0.7 percent. After adjustments for currency effects, the reduction amounted to 1.1 percent. While revenues in the product areas of non-stick coatings and wood coatings increased in Europe and Asia, revenues in the product areas of packaging coatings as well as joinery coatings in Switzerland failed to reach the prior year levels. Mainly the environment in the Swiss furniture market was challenging. However, there were first signs of improvement compared to the weak second half of 2015. The operating result (EBITDA) declined to CHF 4.0 million (prior year: CHF 6.7 million) and, at 5.5 percent, the EBITDA margin also fell below the relevant prior year figure. It should be noted that the prior year operating result (EBITDA) included a nonrecurring profit of CHF 1.3 million from the sale of real property.

On August 9, 2016, Management announced its plans to sell the Coatings group with the aim of concluding the transaction by the end of 2016, if possible.

Industrial Services - slight revenue growth, high level of profitability

The Industrial Services segment benefited from the dynamic development in the rental business and recorded a marked improvement from the second quarter of the prior year. Net revenues (after currency adjustments) grew by 1.1 percent from the first half of 2015 to CHF 27.2 million (prior year: CHF 26.8 million). Sales volumes in the crane, modular space system and construction equipment trading businesses remained at the prior year levels. On the other hand, the segment reported a gratifying increase thanks to the significant growth in the area of Event Services. The operating result (EBITDA) of CHF 7.4 million fell marginally below the prior year figure (prior year: CHF 7.6 million). The operating margin of 27.3 percent (prior year: 28.5 percent) continued to be at a high level.

Doors - significant development of revenues and earnings

The continuously strong demand in the area of residential construction in Germany and the dynamic market environment in Poland but also the program to increase productivity and profitability initiated in the previous year had a positive impact on the development of revenues and earnings in the Doors segment. When expressed in Swiss francs, the segment recorded a 17.6 percent rise in net revenues to CHF 122.7 million (prior year: CHF 104.4 million) over the first half of 2015. The 13.9 percent increase in revenues after currency adjustments was also significant. The operating result (EBITDA) improved markedly by about 45 percent to CHF 18.4 million (prior year: CHF 12.8 million). This corresponds to an improvement in EBITDA margin by 2.8 percentage points to 15.0 percent (prior year: 12.2 percent). The housing shortage in Germany is expected to continue to have a favorable effect on the positive trend in the residential construction sector.

Outlook

Based on the current mid-year results, the Looser Group again expects a significant growth, after adjustments for currency and acquisition effects, in revenues and operating result as well as an increase in EBITDA margin for 2016.

Telephone conference on the 2016 mid-year financial statements

The details of a telephone conference on the mid-year results to be held from 10:00 a.m. to 11:00 a.m. on August 16, 2016 are set forth on page 6 of this press release.

Key figures Looser Group (Amounts in thousands of CHF)

Key figures Coatings segment (Amounts in thousands of CHF)

Key figures Industrial Services segment (Amounts in thousands of CHF)

Key figures Doors segment (Amounts in thousands of CHF)