DGAP-Adhoc: Airopack Technology Group AG: Half year report 2016

Airopack Technology Group AG: Half year report 2016

EQS Group-Ad-hoc: Airopack Technology Group AG / Schlagwort(e):

Halbjahresergebnis

Airopack Technology Group AG: Half year report 2016

30.09.2016 / 18:00

Veröffentlichung einer Ad-hoc-Mitteilung gemäss Art. 53 KR.

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Publication of 2016 half-year report, business update and outlook

Baar, 30 September 2016 - Today Airopack Technology Group AG ("ATG") has

published its 2016 half-year report.

Half-year report

The consolidated net result in the first half of 2016 amounted to negative

EUR 16.2 million. As from the acquisition of the 50% stake in the Airolux

AG joint venture for an amount of EUR 25 million in May 2016, the losses of

Airolux AG and its subsidiaries are fully consolidated in the ATG result.

Furthermore, the consolidated result is strongly influenced by incidental

expenses of EUR 5.6 million incurred in connection with the acquisition of

the 50% stake in the Airolux AG joint venture, the financing arrangement

entered into with funds managed by affiliates of Apollo Global Management,

LLC (NYSE:APO) (the "Apollo Funds"), and the relocation of the

manufacturing facility from Switzerland to the Netherlands. The ongoing

expansion and strengthening of the organizational footprint in the

Netherlands will better position ATG for the roll-out of Airopack, but has

entailed one-time costs and coincided with a temporary production halt in

the second quarter. 2016 will be a transition year, but Group Management is

confident that the operational result of ATG will rapidly improve once this

transition has been completed and ATG can unlock its growth potential.

As at 30 June 2016, the consolidated net equity amounted to negative EUR

15.2 million. On 7 July 2016, a capital increase of approx. EUR 42 million

was completed. The pro forma shareholders' equity after completion amounted

to approx. EUR 27 million.

The 2016 half-year report is available for download on the ATG website

www.airopackgroup.com under the link - investor relations - reports

(http://www.airopackgroup.com/en/investor-relations/reports/).

Business update

Following the successful acquisition of the 50% stake in the Airolux AG

joint venture, ATG decided to close its manufacturing facility in

Switzerland and transfer manufacturing to the Netherlands, near its global

headquarters in Waalwijk. This move will reduce manufacturing and

logistical costs and improve the organizational footprint. The shut-down of

the manufacturing facility in Switzerland has been carefully managed in

close alignment with Airopack's main customers in order to minimize

disruption to their supply chains.

The new state-of-the-art plant in Waalwijk, the Netherlands, which will

have an initial annual capacity of 80 million pieces of Airopack, will

commence operations in the fourth quarter of 2016. In the second phase, the

manufacturing capacity of the Waalwijk plant can be doubled to 160 million

pieces annually, which is scheduled to take place in the second half of

2017. Necessary changes to the building infrastructure, as well as the

delivery and installation of existing and new machinery, are on track for

both timing and cost. Meanwhile, the first validation runs of the Airopack

assembly lines have been successfully completed and the qualification

process of the new factory is also on track. ATG management has been

strengthened on various levels, and the requisite operational staff has

been hired. The knowledge transfer is nearly completed with the help of a

group of key operational employees from the Swiss manufacturing facility.

ATG was able to secure financing for the roll-out of its patented Airopack

technology thanks to its new strategic partnership with the Apollo Funds.

The Airopack global growth strategy will be supported by the further

development of an authorized filler network ("AFN") business platform. The

AFN platform offers qualified filling companies the opportunity to become

local filling partners for Airopack on a license base.

Outlook

Based on the current development of the customer and sales pipeline, ATG

expects an ongoing positive evolution of Airopack sales and results. Once

the first deliveries from the new facility have been shipped, ATG expects

to be able to announce updates on market launches from both existing and

new customers.

With its current cost structure, ATG estimates that it will reach EBITDA

break-even once production reaches a run rate of 80 million pieces per

year. The further ramp-up to a run rate of 160 million pieces annually is

estimated to only marginally increase ATG's fixed cost base, thus further

increasing future profitability. ATG continues to be confident that its

mid-term goal of a run rate volume of over 700 million pieces annually can

be achieved, compared to a total aerosol market of 15.48 billion annual

units as of the end of 2015.

Investor day

ATG is pleased to announce it will organize an investor day at its new

plant in Waalwijk, the Netherlands once the production ramp-up has been

completed. The ATG investor day will be hosted by Quint Kelders, CEO of

ATG. Further details will be announced in due time via the ATG website. In

the meantime, please register on newplantvideo@airopackgroup.com to receive

ATG's bi-weekly Airopack new plant video update.

Key figures

^

in TEUR in TEUR

HY 2016 HY 2015

Consolidated income statement

Net sales 6'024 3'189

EBITDA -11'605 -2'560

EBIT -14'566 -3'538

Net result -16'226 -4'209

Net result per share in -1.15 -0.31

EUR

Consolidated cash flow 3'867 3'515

Consolidated balance sheet

Cash and cash equivalents 6'784 4'529

Shareholders' equity -15'183 1) 11'780

Balance sheet total 82'669 31'058

°

1) On 7 July 2016, a capital increase of approx. EUR 42 million was

completed. The pro forma shareholders' equity after completion amounted

to approx. EUR 27 million.

For more information:

Investors: Media:

Airopack Technology Group AG Hill + Knowlton Strategies

Quint Kelders, CEO / Frans van der Vorst, CFO Frans van der Grint

Zugerstrasse 76b T: +31 (0) 20 404 4707 / M: + 31 (0) 6 29044053

CH-6340 Baar E-mail: frans.vandergrint@hkstrategies.com

TF: +31 416 300 800

E-mail: quint.kelders@airopackgroup.com

E-mail: frans.vandervorst@airopackgroup.com

www.airopackgroup.com

^

Airopack Technology Group AG is a leading provider of innovative mechanical

and pressure-controlled dispensing packaging technologies and systems. Its

customers include worldwide manufacturers and suppliers of cosmetics, body

care, pharmaceutical and food products.

The revolutionary and worldwide patented Airopack(R) technology offers a

safe, all-plastic pressurized dispenser that is environmentally and planet

friendly. With deliveries to the world's leading consumer brands, Airopack

Technology Group reached a key milestone in 2015 with respect to commercial

market entry when its technology was embraced by one of the world's leading

consumer brands.

Airopack Technology Group is based in Waalwijk, The Netherlands, home to

its Global Management, Research & Development and Customer Service

functions. Airopack Technology Group is in the process of transferring its

Ready to Fill manufacturing site from Bilten, Switzerland to Waalwijk, the

Netherlands while at the same time substantially expanding its production

capacity. In addition, it runs a Full Service Filling operation in Heist-

op-den-Berg, Belgium.

The shares of the company are listed on the Swiss Reporting Standard of the

SIX Swiss Exchange since 2010. (Ticker: AIRN / ISIN: CH0242606942).

www.airopackgroup.com

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Ende der Ad-hoc-Mitteilung

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Sprache: Deutsch

Unternehmen: Airopack Technology Group AG

Zugerstrasse 76b

6340 Baar

Schweiz

Telefon: +41 417663500

Fax: +41 417663509

E-Mail: frans.vandervorst@airopackgroup.com

Internet: www.airopackgroup.com

ISIN: CH0242606942

Börsen: SIX Swiss Exchange

Ende der Mitteilung EQS Group News-Service

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508135 30.09.2016