EQS-Adhoc: 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

2016-09-30 / 18:00 Veröffentlichung einer Ad-hoc-Mitteilung gemäss Art. 53 KR.

*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 [1] under the link - investor relations - reports (http://www.airopackgroup.com/en/investor-relations/reports/ [2]).

*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 EUR -1.15 -0.31

*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 [1]

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

Ende der Ad-hoc-Mitteilung 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 508135 2016-09-30

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   September 30, 2016 12:00 ET (16:00 GMT)- - 12 00 PM EDT 09-30-16