DGAP-Adhoc: H&R GmbH & Co. KGaA: Preliminary figures for the third quarter 2018

Insider information pursuant to Article 17
of the Market Abuse Regulation [MAR]

H&R GmbH & Co. KGaA: Preliminary figures for the third quarter 2018

- Operating income (EBITDA) reaches just under EUR 60.0 million as of September 30, 2018

- Increase in sales to a total of EUR 833.7 million.

- Consolidated income per share at EUR 0.55

Salzbergen, 18. october 2018. Business performance of H&R GmbH & Co. KGaA (abbreviated as H&R KGaA; ISIN DE000A2E4T77) remained affected by the increase in raw material prices up to and including September 2018. The consolidated operating income* in the third quarter - according to preliminary calculations - increased somewhat compared to mid-year, but at EUR 18.5 million it was down on the very good prior-year quarter (Q3 2017: EUR 27.9 million) as a result of higher raw material prices. EBIT closed at EUR 10.1 million, compared to EUR 19.3 million in the third quarter of 2017. Similar developments were seen at the other earnings levels: Earnings before taxes (EBT) amounted to EUR 7.7 million in the third quarter of 2018 (Q3 2017: EUR 17.2 million), while consolidated income attributable to shareholders of EUR 5.3 million also fell short of the previous year's figure (Q3 2017: EUR 12.5 million). Sales revenues changed by 10.1% compared with the previous quarter as a result of higher raw material costs: In the third quarter of this financial year, H&R generated sales of EUR 283.3 million (Q3 2017: EUR 257.2 million).

In the nine-month period 2018 as a whole, the company achieved an operating income (EBITDA) of EUR 59.7 million (first nine months of 2017: EUR 80.8 million) as a preliminary figure. Based on this, EBIT fell to EUR 34.4 million (first nine months of 2017: EUR 54.4 million) with slightly lower depreciation and amortization. Earnings before taxes (EBT) amounted to EUR 28.6 million (first nine months of 2017: EUR 47.6 million) and declined, mainly due to the higher financing requirements resulting from the increases in raw material prices. Net profit to shareholders reached EUR 20.2 million (first nine months of 2017: EUR 33.9 million). In total, H&R KGaA thus generated earnings per share of EUR 0.55. Due to raw material prices, sales of EUR 833.7 million exceeded again the prior-year figure (first nine months of 2017: EUR 784.9 million).

With EBITDA of EUR 36.6 million (first nine months of 2017: EUR 53.4 million), the ChemPharm Refining segment made a significant contribution to earnings, contributing EUR 11.4 million (Q3-2017: EUR 20.3 million) for the third quarter. While higher raw material costs had a dampening effect on earnings, revenues in the segment increased to EUR 522.6 million (first nine months of 2017: EUR 475.9 million) as a result of higher raw material prices. Of this amount, EUR 175.2 million was attributable to the third quarter of 2018 (Q3 2017: EUR 157.3 million). Once again, the company felt that customers were less optimistic about their own businesses. At the same time, price indices for volume products remained low despite more expensive crude oil, so that product price adjustments remained difficult. The international activities bundled in the ChemPharm Sales segment recorded an overall similar result this year with EUR 23.2 million in the first nine months (first nine months of 2017: EUR 26.9 million). Looking at the third quarter of 2018 on an individual basis, the nine-month period of 2018 saw a year-on-year increase to EUR 8.3 million (Q3 017: EUR 7.9 million). From January to September 2018, revenues amounted to EUR 275.7 million (first nine months of 2017: EUR 271.1 million), of which the third quarter of 2018 contributed EUR 98.6 million (Q3 2017: EUR 87.6 million). The Plastics segment generated EBITDA of EUR 2.9 million and EUR 0.2 million, respectively (first nine months of 2017: EUR 3.4 million; Q3 2017: EUR 0.8 million). Revenues remained slightly weaker at EUR 12.5 million and EUR 43.0 million, respectively, compared to the prior-year figures (Q3 2017: EUR 14.2 million; first nine months of 2017: EUR 44.8 million).

Operating cash flow recovered significantly from the middle of the year (half-year 2018: EUR -15.6 million) to EUR 9.3 million at the end of the nine-month period of 2018 (first nine months of 2017: EUR 44.7 million). Free cash flow (half-year 2018: EUR -40.5 million) recently recovered to EUR -34.7 million (first nine months of 2017: EUR 6.9 million). In a quarter-on-quarter comparison, operating cash flow reached EUR 24.9 million in the third quarter (Q3 2017: EUR 39.7 million), while free cash flow fell from EUR -15.4 million to EUR -19.1 million as a result of higher capital expenditure. The balance sheet total increased from EUR 662.6 million as of December 31, 2017 to EUR 744.7 million. In the same period equity increased from EUR 342.7 million to EUR 355.4 million. As of September 30, 2018, the company's equity ratio was at 47.7 % (December 31, 2017: 51.7 %).

The past three months have shown the visibility needed for the last quarter and thus for the expectations for the year as a whole. On the basis of the current financial information, the management expects to achieve EBITDA in the range of EUR 70 million to EUR 75 million. Thus H&R should achieve a solid operating result this year. Nevertheless, a performance similar to that of the last two years, which would also correspond to the significantly more ambitious goals of the company management, is currently not permitted, due to the markets and the economic environment.

* EBITDA - Consolidated income before tax, other financial income and expenses and depreciation/amortization, impairment and appreciation of fixed assets and property, plant and equipment

Contact information:
H&R GmbH & Co. KGaA, Head of Investor Relations/Communications, Ties Kaiser
Neuenkirchener Strasse 8, 48499 Salzbergen
Tel.: +49 40 43218-301, Fax: +49 40 43218-390
E-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.