Muehlhan AG: Muehlhan AG publishes results for the first half of 2018

PRESS RELEASE

Muehlhan AG publishes results for the first half of 2018

- Business performance within expected range

- EUR123.6 million of sales revenue, EUR3.5 million of EBIT

Hamburg, August 2, 2018-From January through June 2018, Muehlhan AG (Open Market; ISIN DE000A0KD0F7) generated sales revenues of EUR123.6 million (previous year: EUR118.9 million) and profit from operations (EBIT) of EUR3.5 million (previous year: EUR4.2 million). This decline was a result of starting new activities in Denmark with the associated start-up costs and a late start to the offshore season. Earnings attributable to the investors of Muehlhan AG increased by EUR0.3 million to EUR1.9 million. Cash flow from operating activities amounts to EUR1.7 million (previous year: EUR1.4 million).

A geographic review shows that sales revenue in Europe increased by EUR5.2 million to EUR96.0 million. EBIT in the region decreased from EUR5.7 million to EUR4.6 million due to the late start to offshore activities in the North Sea and start-up costs related to entry into the scaffolding market in Denmark. In the Middle East, sales revenue declined by EUR0.7 million to EUR10.1 million in the reporting period while EBIT increased considerably to EUR0.9 million as it was possible to mitigate the negative effects of the Qatar blockade. At EUR11.1 million, the Muehlhan Group's activities in North America generated EUR0.9 million more of sales revenue in the first half of 2018 than in the previous year. EBIT developed positively, climbing from EUR0.6 million last year to EUR0.8 million. In the Rest of the World, sales revenue decreased against the prior-year period by EUR0.6 million to EUR6.3 million. EBIT declined slightly by EUR0.1 million to EUR0.8 million.

A market-based review shows that the Ship business segment improved in profitability. With sales revenue decreased by EUR0.6 million to EUR28.2 million, EBIT increased from EUR2.2 million to EUR2.9 million. In the Oil & Gas segment, a slight upturn in the market led to an increase in sales revenue by EUR3.8 million to EUR38.8 million. EBIT increased accordingly from EUR1.6 million to EUR2.1 million. The Renewables segment suffered the lack of a follow-up order from a major project completed in the previous year and the late start to the offshore season. This led to a decrease in sales revenue by EUR4.2 million to EUR11.7 million. EBIT also decreased perceptibly from EUR2.8 million to EUR-0.3 million in the reporting period.

The Industry/Infrastructure business posted sales revenues of EUR44.9 million for the period from the beginning of January to the end of June 2018, compared with EUR39.2 million for the same period of 2017. EBIT also rose by EUR0.8 million to EUR1.9 million.

For 2018, Muehlhan stands by its published forecast that sales revenue will remain constant at around EUR250 million and that EBIT will improve slightly to between EUR8.5 million and EUR9.5 million compared with the same period last year.

The company's key performance indicators are shown in the following table:

¹ EBITDA: Earnings before interest, taxes, depreciation and amortization
² EBIT: Operating income (Earnings before interest and taxes)
³ EBT: Earnings before taxes
⁴ Fixed assets: Total of non-current assets less deferred tax assets

About Muehlhan: Worldwide, Muehlhan Group is a reliable partner in industrial services. As one of the few full-service providers, we offer our customers a broad range of services designed to meet the exacting quality standards expected in professional industrial services. Our customers benefit from our exceptional organizational skills, on-time delivery, the technical expertise that differentiates us from our competitors, and our more than 130 years of experience. We have an established market presence in the four business segments in which we operate: Ship, Renewables, Oil & Gas, and Industry/Infrastructure. Muehlhan AG is a listed company and is traded on the Open Market under ISIN DE000A0KD0F7.

For more information, visit www.muehlhan.com

Contact: Muehlhan AG; phone: +49-40-752-7115-0; e-mail: investorrelations@muehlhan.com