DGAP-Adhoc: Airopack Technology Group AG: Airopack Technology Group AG successfully begins production in its new plant and announces 2016 results

Airopack Technology Group AG: Airopack Technology Group AG successfully begins production in its new plant and announces 2016 results

^

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

Jahresergebnis

Airopack Technology Group AG: Airopack Technology Group AG successfully

begins production in its new plant and announces 2016 results

24.03.2017 / 18:17 CET/CEST

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

---------------------------------------------------------------------------

Airopack Technology Group AG successfully begins production in its new plant

and announces 2016 results

Baar, 24 March 2017 - Airopack Technology Group AG ("ATG") is pleased to

confirm the successful ramp-up of Airopack production from its new 18.000m2

manufacturing site in Waalwijk, built in only 168 days, which started

operations in December 2016.

Improvement of our operational footprint

In 2016 ATG completed the acquisition of the 50% stake in Airolux from its

former joint-venture partner. Following this acquisition, ATG improved and

expanded its operational footprint by consolidating all Airopack

manufacturing operations into one site. As a result all Airopack production

was relocated from Bilten (CH) to Waalwijk (NL), where our new

state-of-the-art production facility was completed in December 2016, after

only 168 days, in line with budget, scope and manufacturing specifications.

Since December 2016, shipment of Airopack products has started from our new

Waalwijk factory, which produces Airopack under the strictest quality

control and at market-leading manufacturing cost at full capacity. The

modular layout of the new plant provides for straightforward upscaling of

capacity, with minimal business disruption and the prospect for further cost

efficiencies to come.

The new plant in Waalwijk, has an initial annual capacity of 80 million

Airopack units. ATG is in the advanced stages of exploring doubling its

manufacturing capacity of the plant to 160 million pieces per annum,

provisionally scheduled to start in the second half of 2017.

The shut-down of the manufacturing facility in Switzerland in 2016 was

carefully planned and managed in close alignment with Airopack's main

customers in order to minimize disruption to their supply chains. We were

delighted to see that our customers continued to support us during this

transition. As in the previous year the majority of our volumes were shipped

to leading global personal care companies. Several orders for Airopack were

also filled by our Belgian company Airosolutions, which allows us to offer

an in-house filling service. Airosolutions also offers its own products and

expanded its product offering in 2016 through the development of innovative

packaging solutions for personal care customers.

To finance the acquisition and the subsequent investment in Airopack's

manufacturing capabilities in the Netherlands, ATG entered into a strategic

partnership with funds managed by affiliates of Apollo Global Management LLC

(NYSE:APO), which committed equity and loans for EUR 122 million in an

operation approved by the General Assembly of Shareholders on 23 June 2016.

2016 Results

The 2016 results are summarized on the next pages. The full Annual Report

will be made available on 5 April 2017 by following this link to our

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

Outlook

With production activities online at our new site in Waalwijk (NL) we are

well positioned to accelerate Airopack sales volumes. The market today is

showing a healthy demand for our products and as production at the new plant

continues to ramp up, we expect to leave the transition phase behind us and

to fully focus on growth and enhanced production efficiencies. Due to

continued growth throughout the year, 2017 will not fully reflect our growth

and efficiency initiatives, although a significant improvement over 2016 is

expected. The Board of Directors and Group Management therefore believe that

the business will achieve its medium term goals of a run-rate volume of over

700 million pieces annually compared to a total aerosol market of 15.48

billion annual units as of the end of 2015 and are confident that we will

continue to enjoy the trust and loyalty of our customers and shareholders.

Source: Grand View Research, Inc., U.S.A., publication date: May 2016

CONSOLIDATED INCOME STATEMENT

in in

TEUR TEUR

2016 2015

Net sales 11.282 7.996

Other operating income 440 726

Change in inventory of finished and semi-finished 605 481

goods

Operating income 12.327 9.203

Raw material expense -11.61- -7.75-

1 8

Personnel expense -11.42- -4.74-

2 5

Other operating expense -17.74- -7.31-

9 0

Operating expense -40.78- -19.8-

2 13

Earnings before interest, taxes, depreciation and -28.45- -10.6-

amortization (EBITDA) 5 10

Depreciation of tangible fixed assets -3.248 -1.24-

4

Amortization of intangible assets -8.239 -741

Earnings before interest and taxes (EBIT) -39.94- -12.5-

2 95

Financial result -6.227 -3.66-

1

Earnings before taxes (EBT) -46.16- -16.2-

9 56

Income taxes 3.852 -

Net result -42.31- -16.2-

7 56

Result development

From the acquisition in May 2016 of the remaining 50% shareholding in the

former Airolux joint venture, the results of Airolux AG and its subsidiaries

are fully consolidated in the ATG results. Furthermore a full year of sales

from Airosolutions (acquired during 2015), is included for 2016.

The changes to the consolidation perimeter had a positive effect on sales,

which grew to EUR 11.3 million, a 41% increase over 2015. Airosolutions

sales contributed EUR 7.9 million, while during the second half of 2016, the

relocation of production capacity resulted in lower sales of Airopacks, with

only limited quantities being delivered from existing inventory.

The cost of the wind-down of the Bilten plant and the simultaneous start-up

of the new plant in Waalwijk were fully included in the 2016 results and are

reflected as higher material and personnel costs, as well as higher

operating expenses. Other operating expenses include furthermore EUR11.3

million exceptional and non-recurring costs, related to fund raising and the

termination of the joint-venture.

Due to the acquisition of the 50% joint venture shareholding goodwill was

created, which is being amortized over 5 years.

As a result of the changes in the consolidation perimeter, the changes in

the operational footprint and the exceptional and non-recurring cost, the

net result of the Group amounted to a loss of EUR 42.3 million.

CONSOLIDATED BALANCE SHEET

in TEUR in TEUR

Assets 31.12.2016 31.12.2015

Cash and cash equivalents 8.340 2.918

Trade accounts receivable 2.054 2.941

Other receivables 679 1.128

Inventories 3.445 2.354

Prepayments and accrued income 458 186

Current assets 14.976 9.527

Financial assets 4.314 8.927

Tangible fixed assets 28.341 6.736

Intangible assets 46.265 7.444

Non current assets 78.920 23.107

Total assets 93.896 32.634

Liabilities and shareholders' equity

Current liabilities 10.282 6.375

Non current liabilities 80.930 26.103

Liabilities 91.212 32.478

Share capital 74.500 55.276

Capital reserves 10.753 -13.733

Cumulative translation adjustments 912 32

Accumulated losses -83.481 -41.419

Shareholders' equity 2.684 156

Total Liabilities and Shareholders' equity 93.896 32.634

Balance sheet

The balance sheet reflects important changes to the Group's financing and

asset base. Higher current assets and liabilities are mainly the result of

the full consolidation of Airolux. Non-current assets have grown due to the

inclusion of acquisition goodwill, while non-current liabilities show the

long term debt contracted with the Apollo Funds. The shareholders' equity

slightly increased as the net loss of the Group was absorbed by the capital

increase of July 2016.

CONSOLIDATED CASH FLOW STATEMENT

in in

TEUR TEUR

2016 2015

Cash flow from operating activities -22.10- -13.72-

7 6

Tangible and intangible assets

Invest- -19.16- -4.104

ments 8

Dispo- 1.516 -

sals

Payment for the acquisition of -25.09- -

consolidated organisations (less cash) 1

Outflow from long term receivables from -2.030 -1.550

joint venture

Cash flow from investing activities -44.77- -5.654

3

Inflow / (Outflow) from current financial -31.71- 85

liabilities third parties 7

Inflow / (Outflow) from shareholder loan 65.145 -2.824

(Outflow) / Inflow from long-term -3.754 13.383

financial liabilities

Inflow from capital increase 42.636 10.657

Cash flow from financing activities 72.310 21.301

Total Cash flow 5.430 1.921

Cash and cash equivalents as at 1 January 2.918 956

Total Cash flow 5.430 1.921

Impact of currency translation -8 41

Cash and cash equivalents as at 31 8.340 2.918

December

Cash flow statement

The cash flow statement shows the effect of the operating loss, the

acquisition of 50% of the former Airolux joint venture and the significant

investment in the new Waalwijk plant. All was funded by the cash inflow from

the Apollo Funds, which contributed both debt and shareholder equity

financing. Cash increased to EUR 8.3 million at 31 December 2016.

For more information:

Investors:

Airopack Technology Group AG

Quint Kelders, CEO / Liebwin van Lil, CFO

Zugerstrasse 76b

CH-6340 Baar

TF: +31 416 300 800

E-Mail: quint.kelders@airopackgroup.com

E-Mail: liebwin.vanlil@airopackgroup.com

www.airopackgroup.com

Airopack Technology Group AG is a leading developer and supplier of

mechanical and pressure-controlled dispensing packaging technologies

and systems for manufacturers and suppliers of cosmetics, body care,

pharmaceutical and food products. The revolutionary and worldwide and

solely by ATG patented Airopack(R) technology offers a safe,

all-plastic pressurized dispenser that is environmentally and planet

friendly

Airopack Technology Group operates a Airopack Ready to Fill

manufacturing facility in Waalwijk, The Netherlands and a Full-Service

Filling operation in Heist-op-den-Berg Belgium, an Global Research and

Development Team and the Airopack Global Management and Customer

Service Organisation in Waalwijk, The Netherlands.

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: liebwin.vanlil@airopackgroup.com

Internet: www.airopackgroup.com

ISIN: CH0242606942

Börsen: SIX Swiss Exchange

Ende der Mitteilung EQS Group News-Service

---------------------------------------------------------------------------

558203 24.03.2017 CET/CEST

°