DGAP-Ad hoc: H&R Aktiengesellschaft

DGAP-Adhoc: H&R Aktiengesellschaft: Preliminary figures for the first half of 2016

H&R Aktiengesellschaft / Key word(s): Preliminary Results/Half Year Results

15.07.2016 12:02

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.

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

H&R AG Neuenkirchener Str. 8 48499 Salzbergen

H&R AG: Preliminary figures for the first half of 2016

- Compared to the first half of 2015, operating income (EBITDA) increased significantly to EUR 54.4 million

- Positive EBITDA trend in all three segments

- Refining segment continues to be strongest driver of earnings

- Earnings forecast for 2016 updated

Salzbergen, 15 July 2016. H&R Aktiengesellschaft (ISIN DE0007757007) confirms that its positive business performance since the beginning of the year continued during the second quarter of 2016 as well. Once again, based on preliminary calculations, second-quarter consolidated operating income (EBITDA) increased by just under 6% to EUR 27.2 million compared to the prior-year quarter, which was also positive (Q2 2015: EUR 25.7 million). EBIT improved by around 9% from EUR 17.9 million in the second quarter of 2015 to EUR 19.5 million. During the second quarter of 2016, the company's other earnings indicators also pointed to strong profitability: earnings before taxes (EBT) for the second quarter of 2016 totaled EUR 17.0 million (Q2 2015: 15.7 million); net profit to shareholders of EUR 12.8 million was almost equivalent to the prior-year figure (Q2 2015: EUR 13.4 million). Due to prices for raw materials, sales revenues decreased to EUR 237.1 million during the second quarter of this year (Q2 2015: EUR 261.7 million).

According to preliminary figures, for the first half of 2016, the company's operating income (EBITDA) jumped by more than 30% to EUR 54.4 million (first half of 2015: EUR 41.2 million). EBIT amounted to EUR 39.0 million (first half of 2015: EUR 26.0 million), a year-on-year increase of 50%. For the first half as a whole, pre-tax earnings (EBT) improved by almost 63% to EUR 33.7 million (first half of 2015: EUR 20.7 million). Consolidated net profits increased by more than 44% to EUR 26.3 million (first half of 2015: EUR 18.2 million). As a result, H&R AG generated earnings per share of EUR 0.73, of which EUR 0.35 was attributable to the second quarter of 2016 (first half of 2015: EUR 0.51; Q2 2015: EUR 0.38). Due to prices of raw materials, sales revenues of EUR 465.1 million were again lower than the prior-year figure (first half of 2015: EUR 524.7 million).

A significant contribution to the improved earnings situation came from the ChemPharm Refining segment, where EBITDA increased by around 37% to EUR 39.0 million (first half of 2015: EUR 28.4 million), EUR 18.1 million of which was generated in the second quarter of 2016 (Q2 2015: EUR 18.6 million). Based on lower prices for raw materials, the segment's sales revenues dropped by 15% to EUR 283.7 million (first half of 2015: EUR 335.6 million). Of this amount, EUR 143.7 million was attributable to the second quarter of 2016 (first half of 2015: EUR 335.6 million; Q2 2015: EUR 167.4 million). The key factors here were the strong demand from our customers and the stable trend in margins for our primary and by-products.

Compared to the previous year, the international businesses included in the ChemPharm Sales segment likewise reported considerably higher operating income of EUR 8.9 million in the second quarter of this year (up 5%) and EUR 16.8 million in the first half of this year (+up 15%) (Q2 2015: EUR 8.5 million; first half of 2015: EUR 14.6 million). The trend in sales revenues (EUR 157.9 million) was somewhat more restrained (first half of 2015: EUR 165.3 million, down 5%) and EUR 80.4 million (Q2 2015: EUR 83.2 million, down 3%), respectively.

The Plastics segment generated positive EBITDA for both the second quarter (EUR 0.7 million) and the first half (EUR 0.9 million) of 2016 (Q2 2015: EUR 0.0; first half of 2015: EUR 0.3 million). Compared to the prior-year figures, sales revenues were lower at EUR 14.9 million for the second quarter and EUR 28.4 million for the first half of 2016 (Q2 2015: EUR 16.5 million; first half of 2015: EUR 31.8 million), but picked up noticeable momentum again in the second quarter of 2016.

Cash flow from operating activities totaled EUR 19.8 million in the second quarter of 2016 (Q2 2015: EUR 22.9 million); free cash flow amounted to EUR 11.4 million (Q2 2015: EUR 18.9 million). By contrast, due to an improvement in the earnings situation and lower working-capital requirements, operating cash flow increased substantially from EUR 19.9 million in the first half of 2015 to EUR 44.2 million in the first half of 2016 and free cash flow jumped from EUR 10.1 million to EUR 27.0 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 647.9 million. Over the same period, shareholders' equity increased from EUR 287.1 million to EUR 303.6 million. As of 30 June 2016, the company's equity ratio stood at 46.9% (31 December 2015: 45.7%).

Overall, the company ended the first half of 2016 with two good quarters. Based on currently available information, the Executive Board expects overall business performance to be somewhat less dynamic during the second half of 2016. Although market quotations and product prices continue to be highly sensitive, the Executive Board nevertheless considers it appropriate to update its previous 2016 EBITDA forecast of EUR 86.0 million: providing the prices and margins for its products continue to be stable, the company now believes there is an additional earnings potential of around 10%.

The final financial figures and other information on 2016 business performance to date will be published, as planned, in the Second Interim Report on 12 August 2016.

Contact Information: H&R AG, Investor Relations/Public Relations, Ties Kaiser Neuenkirchener Strasse 8, 48499 Salzbergen Tel.: +49 40 43218-321, Fax: +49 40 43218-390 e-mail: Ties.Kaiser@hur.com www.hur.com

H&R AG: H&R AG 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.

15.07.2016 The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de

--------------------------------------------------------------------------- Language: English Company: H&R Aktiengesellschaft 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 End of Announcement DGAP News-Service ---------------------------------------------------------------------------