DGAP-Ad-hoc: H&R GmbH & Co. KGaA / Key word(s): Quarter Results/Preliminary Results H&R GmbH & Co. KGaA: Robust preliminary figures for the first quarter of 2018, as expected 26-Apr-2018 / 11:21 CET/CEST Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Insider information pursuant to Article 17 of the Market Abuse Regulation [MAR] H&R GmbH & Co. KGaA: Robust preliminary figures for the first quarter of 2018, as expected - Operating income (EBITDA) of EUR23.7 million significantly higher than in the final quarter of 2017 (Q4 2017: EUR17.1 million); EUR-3.7 million variation from the very good prior-year quarter (Q1 2017: EUR27.4 million) - Consolidated income attributable to shareholders at EUR9.9 million (Q1 2017: EUR10.5 million), earnings per share of EUR0.27 (Q1 2017: EUR0.29) - Outlook for 2018 unchanged Salzbergen, Germany, 26 April 2018. Based on preliminary calculations, in the first quarter of financial year 2018, H&R GmbH & Co. KGaA (abbreviated: H&R KGaA; ISIN DE000A2E4T77) generated EUR23.7 million (Q1 2017: EUR27.4 million) of consolidated operating income (EBITDA - consolidated earnings before income taxes, other financial income and expenses and depreciation, amortization, impairments and reversals of impairments of property, plant and equipment and intangible assets). Although results at the beginning of 2018 were somewhat modest compared to the very good prior-year quarter, the company's results for the first three months were nevertheless significantly better than in the most recent final quarter of 2017. Accompanied by a decrease in depreciation and amortization, EBIT decreased by EUR3.0 million from EUR18.4 million in the first quarter of 2017 to EUR15.4 million. The EUR1.7 million change in earnings before taxes from EUR15.5 million to EUR13.8 million was noticeably less due to lower interest expense. During the first quarter of 2018, consolidated income attributable to shareholders decreased by around EUR0.6 million compared to the prior-year quarter to EUR9.9 million (Q1 2017: EUR10.5 million), which is an equivalent of earnings per share of EUR0.27. Due to prices of raw materials, sales revenues for the current quarter again rose slightly (by EUR3.5 million) year-on-year from EUR267.4 million to EUR270.9 million. The biggest contribution to the stable operating income came from the ChemPharm division's Refining and Sales segments, which together generated EUR23.2 million of EBITDA (Q1 2017: EUR26.0 million). The German refinery business remained virtually unchanged. By contrast, the Sales segment had a modest start to the year and was responsible for most of the variation. However, H&R believes the segment will be stronger for the rest of the year because of measures it took during the first quarter of 2018 to expand its regional presence. The combined and consolidated sales revenues from the two segments increased slightly (by EUR3.8 million) year-on-year to EUR255.6 million. The Plastics segment again showed a positive performance, with EBITDA of EUR1.3 million in the first quarter of 2018 (compared to EUR1.7 million in the first quarter of 2017). Sales revenues decreased slightly (by EUR0.5 million) from EUR15.7 million in the first quarter of 2017 to EUR15.2 million in the first quarter of 2018. During the first quarter of 2018, cash flow from operating activities exhibited volatility related to the business model: net working capital requirements were higher because of increases in prices of raw materials that were delivered close to the reporting date. Overall, cash flow from operating activities totaled EUR-2.9 million (Q1 2017: EUR-0.3 million). Because of an increase in investment activities, free cash flow decreased to EUR-17.3 million (Q1 2017: EUR-12.4 million). The balance sheet total increased by 3.9% from EUR662.6 million on 31 December 2017 to EUR688.6 million on 31 March 2018. During the same period, shareholders' equity increased from EUR342.7 million to EUR354.5 million, causing the equity ratio to decrease only slightly (by 0.2 percentage points) from year-end 2017 to 51.5% (31 December 2017: 51.7%). Overall, the company had a more modest start to the current financial year than a year ago, but the preliminary results for the first quarter are sound and robust. Given the sensitivity of market rates and product prices, as well as social and geopolitical challenges, H&R KGaA confirms, for the time being, its 2018 forecast range of EUR94.0 to EUR106.0 million and will refrain from a more specific forecast at this early stage. Final figures for the first quarter of 2018 will be published on 15 May 2018, as scheduled. H&R KGaA's Annual Shareholders' Meeting will be held in Hamburg on 24 May 2018. Contact information: H&R GmbH & Co. KGaA, Investor Relations/Communications, Ties Kaiser Neuenkirchener Strasse 8, 48499 Salzbergen Tel.: +49 40 43218-301, Fax: +49 40 43218-390 E-mail: [email protected] 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. --------------------------------------------------------------------------- 26-Apr-2018 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de --------------------------------------------------------------------------- Language: English Company: H&R GmbH & Co. KGaA Neuenkirchener Str. 8 48499 Salzbergen Germany Phone: +49 (0)40 43 218 321 Fax: +49 (0)40 43 218 390 E-mail: [email protected] Internet: www.hur.com ISIN: DE000A2E4T77 WKN: A2E4T7 Listed: Regulated Market in Dusseldorf, Frankfurt (Prime Standard), Hamburg; Regulated Unofficial Market in Berlin, Hanover, Munich, Stuttgart, Tradegate Exchange End of Announcement DGAP News Service --------------------------------------------------------------------------- 679543 26-Apr-2018 CET/CEST