DGAP-News: RATIONAL AG / Key word(s): Final Results RATIONAL AG: Continued successful growth 23.03.2017 / 07:00 The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Press release Rational AG: Continued successful growth - Sales revenues up by 9 percent - by 11 percent after currency adjustments - 27 percent EBIT margin - Dividend of 10.00 euros per share proposed - Growth expected to continue Landsberg, 23 March 2017 Rational posted sales revenues of 613 million euros in the 2016 fiscal year. This equates to growth of 9 percent compared to the previous year (564 million euros). All regions around the world contributed to this positive development. FRIMA grew considerably faster with an increase in sales revenues of 22 percent, thus making a significant contribution to the success. Successful product launches - 5 million euros in one-off costs A new appliance size for the VarioCooking Center(R) and a new appliance generation of the SelfCookingCenter(R) series including, for the first time, a compact version, were launched in 2016. "The new appliance generations were showcased at a total of 50 launch events worldwide to around 5,000 enthusiastic dealers, planners, customers and representatives of the press. The entire brand image and all product documents were redesigned and translated into around 40 languages", as Dr Stadelmann, CEO of the Rational Group, explains. The rollout incurred one-off costs of around 5 million euros, which had a negative impact on earnings for 2016. 27 percent EBIT margin Taking the one-off costs into account, operating expenses rose disproportionately compared with sales revenues. Due to this and negative currency effects, earnings before interest and taxes (EBIT) were 4 percent higher than in the previous year at 167 million euros (2015: 160 million euros). This equates to an EBIT margin of 27 percent (previous year: 28 percent). Negative currency effects The weakness of foreign currencies that are important for Rational in relation to the euro - in particular the British pound - had a negative impact on sales revenues and earnings performance. After currency adjustments, sales revenues were 11 percent above the previous year, and the EBIT margin reached around 28 percent. More than 180 new jobs created In 2016, Rational also invested in the forward-looking development of the company and created more than 180 new jobs worldwide, more than half of which are in Germany. Sales and sales-related functions, in particular, were added. The company plans to create a similar number of new jobs for 2017. Investments in the future In 2016, Rational invested in a new research and development centre in Landsberg and in expanded production capacities for the VarioCooking Center(R) in Wittenheim. The total amount invested in 2016 was 25 million euros. For 2017, the company plans to invest 40 to 50 million euros, a large part of which will be in expanding the assembly factory in Landsberg. "We will thus consolidate our technological lead and lay the foundation for growth in the coming years", as Dr Stadelmann explains. Dividend of 10.00 euros per share proposed In view of the successful development last year, the good future prospects and comfortable liquidity situation, the Supervisory Board and Executive Board will propose to the 2017 General Meeting of Shareholders the distribution of a dividend of 8.00 euros per share and a special dividend of 2.00 euros per share for fiscal year 2016. Growth expected to continue The vast majority of Rational and Frima customers are so satisfied with the products and services that they would buy them again at any time and also recommend them to friends. This rating was confirmed in relation to the launch of the new products. Against this backdrop, and in conjunction with the still very high market potential and the all in all solid forecasts for the global economy, the Executive Board of Rational AG expects the company to be able to continue on the growth path of the past years. "We invested heavily last year in infrastructure and in setting up local and central support functions and processes, and will continue to do so in 2017. We therefore expect our 2017 EBIT margin to be closer to the lower end of our long-term range forecast of 26 to 28 percent. These measures will sustainably improve the company's quality and ensure successful future development", as Dr Stadelmann explains. Contact: Rational Aktiengesellschaft Stefan Arnold / Head of Investor Relations Tel. +49 (0)8191 327-2209 Fax +49 (0)8191 327-72 2209 E-Mail: [email protected] www.rational-online.com Editorial note: The Rational Group is the global market and technology leader for thermal preparation of food in professional kitchens. The company, founded in 1973, employs over 1,700 people, more than 900 of whom are in Germany. Rational was floated in the Prime Standard of the German stock market in 2000 and is currently represented in the MDAX. The company's principal objective is to offer maximum customer benefit at all times. Internally Rational is committed to the principle of sustainability, which is expressed in its policies on environmental protection, leadership, job security and social responsibility. Numerous international awards bear witness to the high quality of the work done by Rational's employees year after year. JA 2016 JA 2015 Change in percent Sales revenues (in m. EUR) 613.0 564.2 +9 EBIT (in m EUR) 166.5 160.2 +4 EBIT margin (in percent) 27.2 28.4 - Profit after taxes (in m EUR) 127.1 121.8 +4 EPS (in EUR) 11.18 10.71 +4 --------------------------------------------------------------------------- 23.03.2017 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de --------------------------------------------------------------------------- Language: English Company: RATIONAL AG Iglinger Straße 62 86899 Landsberg a. Lech Germany Phone: 0049 8191 327 2209 Fax: 0049 8191 327 722209 E-mail: [email protected] Internet: www.rational-online.com ISIN: DE0007010803 WKN: 701080 Indices: MDAX Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Munich, Stuttgart, Tradegate Exchange End of News DGAP News Service --------------------------------------------------------------------------- 554463 23.03.2017