DGAP-News: Nanogate AG

DGAP-News: Nanogate expects an increase in sales in 2016 to over EUR 105 million - Preliminary figures for 2015 exceeded

NANOGATE AG / Key word(s): Final Results/Forecast

27.04.2016 07:28

Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer / publisher is solely responsible for the content of this announcement.

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Nanogate expects an increase in sales in 2016 to over EUR 105 million - Preliminary figures for 2015 exceeded

2015: Group sales increase over 30 % to nearly EUR 91 million, EBITDA rises disproportionately to EUR 10.2 million, dividend to be EUR 0.11 per share, and cash flow from operating activities improves around 50 % to EUR 12.3 million 2016: Sales to reach over EUR 105 million, EBITDA likely to rise to over EUR 12 million, business with enhanced components becoming more important, and launch of the new technology platform

Göttelborn, Germany, 27 April 2016. Nanogate AG, a leading international integrated systems provider for high-performance surfaces, is aiming for further significant growth in 2016: sales are set to rise to at least EUR 105 million. Operating result (EBITDA) is thus likely to increase to over EUR 12 million. The Group already increased its volume of business and profitability significantly in the previous financial year, with sales rising over 30 % to EUR 90.9 million, for example. EBITDA saw an even greater increase to EUR 10.2 million. Despite expenses arising from the expansion strategy, EBIT improved to around EUR 3.0 million; consolidated net income to EUR 0.5 million. The dividend shall again be EUR 0.11 per share. Cash flow from operating activities improved around 50 % to EUR 12.3 million, reflecting the strong business development. Nanogate will continue its Phase5 growth programme with new technologies and applications, as well as intensified internationalisation.

Nanogate AG's CEO, Ralf Zastrau, commented: "Nanogate had a very strong 2015 financial year and is extremely confident about 2016. International expansion and innovative technologies are essential cornerstones of our ongoing course of growth. Nanogate achieved important successes in expanding its market position both in the past financial year and at the beginning of the new year. Our current strategy programme is increasingly paying off. We are recording a strong performance and at the same time laying the foundations for further growth. With the aid of its Phase5 growth programme Nanogate is navigating into a new dimension. The strong rise in sales in 2015 confirm our good strategic orientation. Despite the numerous growth steps and the temporary negative effects arising from the implementation of the expansion strategy, we were at the same time able to further increase profitability."

Operating result rises disproportionately Nanogate again achieved new records in sales and operating result in 2015. Group sales increased, partly due to consolidation effects, by 32.5 % to EUR 90.9 million (previous year: EUR 68.6 million). Compared with 2013, - i.e., before the launch of the Phase5 strategy programme - sales have risen by more than 70 %. The company benefited from a high level of demand in the 2015 financial year in all target markets and from particularly strong year-end business. The two strategic growth areas of advanced metals and advanced polymers are important sales drivers. The export business grew by around a third to some EUR 42 million, and it remains an important sales market whose importance is continuously increasing. The Group's overall performance increased to EUR 94.8 million (previous year: EUR 71.1 million).

The operating result (EBITDA) improved disproportionately despite expenses associated with the expansion strategy. Consolidated EBITDA rose to EUR 10.2 million (previous year: 7.4 million). The financial burden is the result of costs for projects and processes in connection with the expansion of the technology portfolio and capacities. This is in addition to one-off transaction and integration costs. Despite these expenses, the consolidated EBITDA margin increased to 11.2 % (previous year: 10.8 %). Without these one-off effects, the operating margin would have been correspondingly higher. Consolidated EBIT increased to EUR 3.0 million (previous year: EUR 2.5 million). Consolidated net income totalled EUR 0.5 million (previous year: EUR 0.4 million). Earnings per share amounted to EUR 0.16 (previous year: EUR 0.15). The Supervisory and Management Boards will therefore propose another dividend payout of EUR 0.11 per share at the shareholders' meeting.

Cash flow from operating activities increased by some 50 % The Group's financial position has improved despite the expenses associated with the expansion, for example, with investments in technologies and capacities, as well as the financial burden resulting from opening up new international markets. Cash and cash equivalents rose to EUR 22.7 million as at the balance sheet date (previous year: EUR 17.8 million). This was primarily due to strong performance and the successful capital increase in March 2015. Cash flow from operating activities increased by some 50 % to EUR 12.3 million (previous year: EUR 8.2 million). The consolidated balance sheet total increased in the previous financial year to EUR 123.8 million (previous year: EUR 108.5 million). The equity ratio improved to 41.4 % (previous year: 39.0 %).

Forecast and outlook Nanogate is again optimistic about the current 2016 financial year. On the basis of existing projects as well as the majority acquisition of plastics specialist Goletz, the Group expects to see a substantial increase in sales to more than EUR 105 million. The Group would therefore exceed its medium-term sales target of EUR 100 million initially announced in 2014, reaching an important milestone in its Phase5 growth strategy, having generated sales of EUR 53 million in 2013. Despite the continued expenses associated with the expansion strategy as well as the one-off transaction and integration costs, the Group also expects the operating result (EBITDA) to increase significantly in 2016 and exceed the EUR 12 million mark. Substantial funds will continue to flow into the ongoing investment programme and international expansion. In view of the growth strategy, consolidated net income will continue to be shaped by depreciation and amortisation as well as financing costs.

CEO Ralf Zastrau said of the outlook for 2016: "With the aid of the Phase5 strategy programme, we are taking Nanogate into a new dimension - in terms of expertise, the range of services and the volume of business. We are well prepared for the challenges ahead. In the current year we are focusing on launching our new N-Metals Chrome technology platform for the multifunctional metallisation of surfaces. In parallel to this, the lucrative business with enhanced components is becoming increasingly important. On the basis of our existing expertise and many years of experience in series production, we are planning to expand our range of services. As a systems provider, we have the necessary expertise for development and design, the manufacture of the component as well as the multifunctional coating of its surface. The announced majority acquisition of plastics specialist Goletz also contributes to this. In the medium and long term we can look forward to a significant boost to our business due to several factors, from an integrated systems operation to manufactured enhanced components."

Nanogate on Twitter: http://twitter.com/nanogate_ag

If you have any queries, please contact:

Christian Dose (financial press and investors) Nanogate AG Cortent Kommunikation AG Zum Schacht 3 Tel. +49 (0)69 5770 300 0 66287 Göttelborn, Germany nanogate@cortent.de www.nanogate.com

Liane Stieler-Joachim Nanogate AG Tel. +49 (0)6825 9591 220 liane.stieler-joachim@nanogate.com

Nanogate AG: Nanogate (ISIN DE000A0JKHC9) is a leading international integrated systems provider for high-performance surfaces. The Group, which is based in Göttelborn (Saarland), enables the programming and integration of additional properties - such as non-stick, scratchproof and anti-corrosive - into materials and surfaces. True to its slogan 'A world of new surfaces', Nanogate opens up the diverse possibilities of multifunctional surfaces based on new materials for companies in a wide range of industries.

Nanogate provides its customers with technologically and optically high-quality systems. To do so, the company uses its extensive knowledge of innovative materials and processing procedures. The aim is to improve customers' products and processes by means of high-performance surfaces while achieving environmental benefits. The Group concentrates on attractive sectors such as automotive/transport, mechanical/plant engineering, buildings/interiors and sport/leisure as well as on the strategic growth areas of advanced polymers and advanced metals. Nanogate has a unique combination of extensive materials expertise paired with comprehensive, first-class process and production know-how. As a systems provider, Nanogate offers services throughout the entire value chain, from the purchase of raw materials, to the synthesis and formulation of the material systems, right through to the enhancement and production of the finished surfaces. The Group focuses primarily on optically high-quality plastic and metal coatings for all surface types (two and three-dimensional components). Its value drivers are the opening up of new, international markets, the development of new applications for the strategic growth areas of advanced polymers (innovative plastics, e.g. glazing) and advanced metals (innovative metal enhancements, primarily energy efficiency) as well as external growth. In the medium term, Nanogate also intends to achieve a considerable revenue share from environmentally friendly systems and processes.

The Nanogate Group has first-class references (e.g. Airbus, Audi, August Brötje, BMW, BSH Bosch und Siemens Hausgeräte, Daimler, FILA, Jaguar, Junkers, Porsche, Volkswagen). Several hundred projects have already gone into mass production. The company also has strategic partnerships with many international corporations. Nanogate comprises Eurogard B.V., GfO Gesellschaft für Oberflächentechnik AG, Nanogate Industrial Solutions GmbH, Nanogate Textile & Care Systems GmbH, Nanogate Glazing Systems B.V., Vogler GmbH and majority stakes in Plastic-Design GmbH and Walter Goletz GmbH.

Disclaimer: This publication constitutes neither an offer to sell nor an invitation to buy securities. The shares in Nanogate AG (the "Shares") may not be offered or sold in the United States or to or for the account or benefit of "U.S. persons" (as such term is defined in Regulation S under the U.S. Securities Act of 1933, as amended (the "Securities Act")). No offer or sale of transferable securities is being made to the public outside Germany.

27.04.2016 The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de

--------------------------------------------------------------------------- Language: English Company: NANOGATE AG Zum Schacht 3 66287 Göttelborn Germany Phone: +49 (0)6825/95 91 0 Fax: +49 (0)6825/95 91 852 E-mail: nanogate@cortent.de Internet: www.nanogate.de ISIN: DE000A0JKHC9 WKN: A0JKHC Listed: Regulated Unofficial Market in Berlin, Dusseldorf, Munich, Stuttgart; Open Market (Entry Standard) in Frankfurt End of Announcement DGAP News-Service ---------------------------------------------------------------------------