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- Operating income (EBITDA) of EUR 44.8 million in the first nine months as of September 30, 2019

- Sales of EUR 824.7 million at prior-year level

Salzbergen, October 22, 2019 Business performance H&R GmbH & Co. KGaA (abbrev.: H&R KGaA; ISIN DE000A2E4T77) faced a persistently poor market situation for key customer industries up to and including September 2019. Based on preliminary calculations, the Group"s consolidated income* was again under increased pressure in the third quarter compared with the middle of the year and, at EUR 5.1 million, significantly lower than in the prior-year quarter (Q3 2018: EUR 18.5 million). This figure also includes one-off personnel restructuring costs of around EUR 4.0 million for the Coburg site. EBIT closed at EUR -6.5 million, while the figure for the third quarter of 2018 was EUR 10.1 million. The company was particularly impacted by increased depreciation/amortization caused by higher investing activity in recent years. A corresponding trend also continued at the remaining earning levels: Earnings before taxes (EBT) amounted to EUR -8.4 million in the third quarter of 2019 (Q3 2018: EUR 7.7 million), while consolidated income attributable to shareholders of EUR -5.8 million also fell short of the prior year"s figure (Q3 2018: EUR 5.6 million). Sales revenues changed by -3.0 % compared with the previous quarter: In the third quarter of this financial year, H&R generated sales of EUR 274.7 million (Q3 2018: EUR 283.3 million).

In the nine-month period 2019 as a whole, the company achieved a preliminary operating income (EBITDA) of EUR 44.8 million (first nine months of 2018: EUR 59.7 million). Based on this, EBIT fell to EUR 11.4 million (first nine months of 2018: EUR 34.4 million) with depreciation and amortization figures rising by around 32 percent. Earnings before taxes (EBT) amounted to EUR 5.6 million, with financing costs almost unchanged from the same period of the previous year (first nine months of 2018: EUR 28.6 million). Net profit to shareholders reached EUR 4.1 million (first nine months of 2018: EUR 20.2 million). In total, H&R KGaA thus generated earnings per share of EUR 0.11. At EUR 824.7 million, sales were below the prior-year figure (first nine months of 2018: EUR 833.7 million).

The ChemPharm Refining segment which contributed EUR 4.1 million for the third quarter (Q3 2018: EUR 11.4 million), made a still significant but overall weaker contribution to earnings this year with EBITDA of EUR 27.0 million (first nine months of 2018: EUR 36.6 million). Segment sales fell moderately to EUR 514.5 million (first nine months of 2018: EUR 522.6 million). Of this amount, EUR 169.1 million was attributable to the third quarter of 2019 (Q3 2018: EUR 175.2 million). Weakening industries, such as the automotive and chemicals sectors, again impacted sales volumes, while prices continued to come under pressure from oversupply from Eastern Europe and China. As a consequence, a comprehensive set of measures will be introduced to meet the challenges facing the refinery business, comprising short-term cost-saving measures, an optimized product portfolio and a revised raw material, process and facilities set-up. This year, the international activities bundled in the ChemPharm Sales segment recorded an overall comparable result of EUR 22.5 million in the first nine months (first nine months of 2018: EUR 23.2 million). On an individual basis, at EUR 7.3 million, the third quarter of 2019, as the strongest earnings contribution of all segments, was somewhat weaker than the prior-year quarter (Q3 2018: EUR 8.3 million). From January to September 2019, revenues amounted to EUR 320.6 million (first nine months of 2018: EUR 275.7 million), of which the third quarter of 2019 contributed EUR 132.6 million (Q3 2018: EUR 98.6 million). The Plastics segment reached EBITDA of EUR -5.4 million and EUR -5.0 million, respectively (first nine months of 2018: EUR 2.9 million; Q3 2018: EUR 0.2 million). This figure includes one-off restructuring costs of approximately EUR 4.0 million, which will enable GAUDLITZ to reduce its workforce at the Coburg site by around 80 employees and therefore significantly reduce personnel costs in the future. At EUR 10.9 million and EUR 32.9 million, respectively, sales also dropped year-on-year (Q3 2018: EUR 12.5 million; first nine months of 2018: EUR 43.0 million) as a consequence of the weak automotive industry.

At the end of the first nine months 2019, operating cash flow amounted to EUR 71.2 million (first nine-months of 2018: EUR 9.3 million). Free cash flow last amounted to EUR 24.6 million (first nine months of 2018: EUR -34.7 million). In a quarter-on-quarter comparison, operating cash flow reached EUR 27.6 million in the third quarter (Q3 2018: EUR 12.2 million), while free cash flow improved from EUR -17.4 million to EUR -0.9 million despite higher capital expenditure during the same period. The balance sheet total increased from EUR 730.4 million as of December 31, 2018 to EUR 799.2 million. Equity increased from EUR 357.4 million to EUR 359.5 million in the same period. As of September 30, 2019, the Group"s equity ratio was 45.0 % (December 31, 2018: 48.9 %).

The interim figures prior to the final quarter of 2019 do not indicate that, according to current knowledge, the full-year EBITDA forecast of up to EUR 75.0 million can be achieved. Moreover, no fundamental improvement in market and economic data is to be expected in the fourth quarter 2019, so that H&R currently expects to achieve a result of roundabout EUR 55.0 million. This result will already include the above mentioned restructuring costs.

The final financial figures and further information on the course of business in 2019 to date will be published as scheduled on November 15, 2019.

Contact:

H&R GmbH & Co. KGaA, Head of Investor Relations / Communication, Ties Kaiser

Neuenkirchener Straße 8, 48499 Salzbergen

Phone.: +49 40 43218-321, Fax: +49 40 43218-390

Mail: ties.kaiser@hur.com
www.hur.com

H&R GmbH & Co. KGaA:

H&R 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 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 Management Team and the information available to it 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 pursuant to Article 17 of the MAR.