DGAP-Ad hoc: H&R GmbH & Co. KGaA

- Operating income (EBITDA) at a high level of EUR52.9 million

- All three segments made positive contributions to EBITDA

- Biggest increase in the Plastics segment

Salzbergen, 20 July 2017. H&R GmbH & Co. KGaA (short form: H&R KGaA; ISIN DE000A2E4T77) has confirmed its positive business performance since the beginning of the year with positive results for the first half. According to preliminary figures, while consolidated net operating income (EBITDA - Earnings before income taxes, financial income and expenses, depreciation, impairments and reversal of impairments of property, plant and equipment and intangible assets) for the second quarter did not quite achieve the momentum seen at the beginning of the year, at EUR25.6 million it was still close to the very positive figure posted in the prior-year period (Q2 2016: EUR27.2 million). EBIT totaled EUR16.7 million, compared to EUR19.5 million in the previous year. Although the company's profitability was slightly weaker at the other earnings levels in the second quarter of 2017, it nevertheless remained solid: During the second quarter of 2017, earnings before taxes (EBT) totaled EUR14.8 million (Q2 2016: EUR17.1 million), while the company's consolidated net profit to shareholders also was in the double digits, at EUR10.9 million (Q2 2016: EUR12.8 million). Due to prices for raw materials, sales revenues increased to EUR260.2 million during the second quarter of the current fiscal year (Q2 2016: EUR237.1 million).

According to preliminary figures, for the entire first half of 2017, the company's operating income (EBITDA) decreased slightly to EUR52.9 million (first half of 2016: EUR54.4 million). EBIT amounted to EUR35.2 million, a decrease compared to the same period of the previous year (first half of 2016: EUR39.0 million). Earnings before taxes (EBT) followed a similar trend, coming in at EUR30.3 million (first half of 2016: EUR33.7 million). Consolidated net income attributable to shareholders totaled EUR21.4 million (first half of 2016: EUR26.3 million). As a result, H&R KGaA generated earnings per share of EUR0.60, of which EUR0.30 was attributable to the second quarter of 2017 (first half of 2016: EUR0.73; Q2 2016: EUR0.35). Due to prices of raw materials, sales revenues of EUR527.7 million were significantly higher than the comparable prior-year figure (first half of 2016: EUR465.1 million).

With increased momentum, the ChemPharm Refining segment made a major contribution to earnings of EUR17.1 million in the second quarter of 2017. Overall, the segment reported EUR33.1 million of EBITDA for the six-month period (first half of 2016: EUR39.0 million). Due to prices of raw materials, segment sales revenues increased by 12.3% to EUR318.6 million (first half of 2016: EUR283.7 million). Of this amount, EUR156.8 million was generated during the second quarter of 2017 (Q2 2016: EUR143.7 million).

The international businesses included in the ChemPharm Sales segment likewise reported higher operating income of EUR9.0 million in the second quarter of this year and EUR19.0 million in the first half year (Q2 2016: EUR8.9 million; first half of 2016: EUR16.8 million). There was a strong upward trend in sales revenues to EUR183.5 million in the first half of 2017 (first half of 2016: EUR157.9 million) and to EUR91.2 million in the second quarter (second quarter of 2016: EUR80.4 million).

The Plastics segment continued its impressive performance, generating positive EBITDA for both the second quarter (EUR1.0 million) and the first half (EUR2.7 million) of 2017 (Q2 2016: EUR0.8 million; first half of 2016: EUR0.9 million). Compared to the prior-year figures, the trend in sales revenues was also solid at EUR14.9 million for the second quarter and EUR30.6 million for the first half of 2017 (Q2 2016: EUR14.9 million; first half of 2016: EUR28.4 million).

Although it started the year in negative territory, cash flow from operations ended the second quarter of 2017 at a positive EUR5.3 million (Q2 2016: EUR19.8 million), while free cash flow stood at EUR -5.0 million (Q2 2016: EUR11.4 million). Given the company's solid earnings situation, net working capital requirements due to higher prices of raw materials, along with increased provisions for personnel expenses, currency effects and higher income taxes, caused cash flow from operations to drop from EUR44.2 million in the first half of 2016 to EUR5.0 million in the first half of 2017. Free cash flow decreased from EUR27.0 million to EUR -17.4 million, in part because of higher capital expenditures.

There was a moderate decrease in the balance sheet total from around EUR648.2 million as of 31 December 2016 to EUR638.4 million on 30 June 2017. Over the same period, shareholders' equity increased from EUR317.4 million to EUR334.2 million. As of 30 June 2017, the company's equity ratio stood at 52.3% (31 December 2016: 49.0%).

Overall, the company ended the first half of 2017 with two good quarters and solid earnings for the first six months. Mainly because of the subdued outlook for the U.S. and Asian automotive and tire industries, management expects business performance to be somewhat less dynamic in the second half of the year. Nevertheless, management is raising the lower end of the expected range to EUR92.0 million (previously: EUR86.0 million) and - based on currently available information - also believes it is possible that EBITDA will reach the high end of the range of up to EUR101.0 million.

The final financial figures and other information on 2017 business performance to date will be published, as planned, in the Second Interim Report on 11 August 2017.

Contact information:
H&R GmbH & Co. KGaA, Head of Investor Relations/Communications, 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 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 insider information 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.