DGAP-News: HELLA GmbH & Co. KGaA / Key word(s): Annual Results HELLA grows significantly stronger than the automotive market in the fiscal year 2017/2018 10.08.2018 / 07:00 The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- HELLA grows significantly stronger than the automotive market in the fiscal year 2017/2018 * Currency-adjusted sales growth reaches 9.3 percent; reported consolidated sales rise by 7.2 percent to EUR 7.1 billion * Adjusted earnings before interest and taxes improve by 8.8 percent to EUR 581 million; adjusted EBIT margin increases to 8.2 percent * The Automotive segment drives Group-wide sales growth; Aftermarket considerably improves earnings before interest and taxes; Special Applications generates strong sales and earnings momentum * Dividend to be increased by 14 percent to EUR 1.05 per share * Profitable growth path expected to continue in the fiscal year 2018/2019 Lippstadt, August 10, 2018. The lighting and electronics specialist HELLA continued its profitable growth path in the fiscal year 2017/2018 (June 1, 2017, to May 31, 2018). Thus, the currency-adjusted consolidated sales rose to 9.3 percent. Reported sales rose by 7.2 percent to EUR 7.1 billion (prior year: EUR 6.6 billion). At the same time, the company became more profitable. The adjusted earnings before interest and taxes (adjusted EBIT) increased by 8.8 percent to EUR 581 million (prior year: EUR 534 million), making the adjusted EBIT margin 8.2 percent (prior year: 8.1 percent). Taking special effects into account, the reported earnings before interest and taxes (EBIT) increased by 13.2 percent to EUR 574 million (prior year: EUR 507 million), with the reported EBIT margin increasing to 8.1 percent (prior year: 7.7 percent). Moreover, the adjusted free cash flow from operating activities improved significantly compared to the previous year, rising by 62 percent to EUR 241 million (prior year: EUR 149 million). "In this past fiscal year, we have demonstrated our commitment to continuity and reliability. We have enjoyed significantly stronger growth than the automotive market and further increased our profitability despite the challenging industry environment", explains HELLA CEO Dr. Rolf Breidenbach. "This proves that our clear strategic approach is in line with the key trends on the automotive market such as autonomous driving, efficiency and electrification, connectivity and digitalization as well as individualization, and that we have positioned ourselves correctly with our innovative products to benefit from the automotive industry's transformation." Automotive segment drives Group-wide sales growth In the fiscal year 2017/2018, the Automotive segment played a major role in the Group-wide sales increase. Reported segment sales increased by 8.0 percent to EUR 5.4 billion (prior year: EUR 5.0 billion). This growth is the result, in part, of persistent high demand for innovative lighting and electronics solutions coupled with a number of new production ramp-ups. Together with ongoing capacity expansions and significant research and development activities, the adjusted EBIT in the Automotive segment rose by 3.3 percent to EUR 459 million (prior year: EUR 444 million) This corresponds to an adjusted EBIT margin of 8.5 percent (prior year: 8.8 percent). The segment's reported EBIT increased by 2.8 percent to EUR 457 million (prior year: EUR 444 million); the reported EBIT margin therefore amounts to 8.4 percent (prior year: 8.8 percent). Aftermarket significantly improves earnings before interest and taxes In the Aftermarket segment, sales with external customers rose by 3.4 percent to EUR 1.2 billion in the past fiscal year (prior year: EUR 1.2 billion). This sales growth was supported by positive development in all of the segment's business fields. In addition, the segment's earnings also improved significantly: the EBIT climbed by 19.3 percent to EUR 87 million (prior year: EUR 73 million), while the EBIT margin rose to 7.1 percent (prior year: 6.0 percent). Special Applications generates strong sales and earnings momentum The Special Applications segment closed out the fiscal year 2017/2018 with a considerable improvement in sales and earnings. The reported segment sales rose by 11.6 percent to EUR 430 million (prior year: EUR 385 million) due to positive development in the business for agricultural and construction machinery and truck accessories. Furthermore, the profitability of the segment also improved substantially: in the past fiscal year, the EBIT rose by EUR 28 million to EUR 48 million (prior year: EUR 20 million), which corresponds to an EBIT margin of 11.2 percent (prior year: 5.1 percent). Dividend to be increased by 14 percent to EUR 1.05 per share In the fiscal year 2017/2018, earnings for the period amounted to EUR 390 million (prior year: EUR 343 million). On this basis, the company management will propose to the Annual General Meeting on September 28, 2018, that the dividend be increased by 14 percent to EUR 1.05 per share (prior year: EUR 0.92). Profitable growth path expected to continue in the fiscal year 2018/2019 For the current fiscal year 2018/2019 (June 1, 2018, to May 31, 2019), HELLA is confident the profitable growth path will continue. The company therefore expects currency- and portfolio-adjusted sales growth as well as an increase in the adjusted EBIT of 5 to 10 percent compared to the previous fiscal year. In terms of the adjusted EBIT margin, a value roughly equaling that of last year is expected. Selected key financial figures (in EUR millions or as a percentage of sales): Fiscal year Fiscal year Chan- 2017/2018 2016/2017 ge Sales 7,060 6,585 +7.2- % Adjusted earnings before interest and 581 534 +8.8- taxes (adjusted EBIT) % Earnings before interest and taxes 574 507 +13.- (EBIT) 2% Adjusted EBIT margin 8.2% 8.1% +0.1 pp EBIT margin 8.1% 7.7% +0.4 pp Where sums and percentages have been rounded, differences may arise as a result of commercial rounding. The annual report for the fiscal year 2017/2018 can now be downloaded on the HELLA GmbH & Co. KGaA website. Please note: This text and corresponding photo material can also be found in our press database at: www.hella.com/press HELLA GmbH & Co. KGaA, Lippstadt: HELLA is a global, family-owned company, listed on the stock exchange, with more than 40,000 employees at over 125 locations in some 35 countries. The HELLA Group develops and manufactures products for lighting technology and electronics for the automotive industry and also has one of the largest retail organizations for automotive parts, accessories, diagnostics, and services within Europe. With more than 7,000 people working in research and development, HELLA is one of the most important innovation drivers on the market. Furthermore, with sales of EUR 7.1 billion in the fiscal year of 2017/2018, the HELLA Group is one of the top 40 automotive parts suppliers in the world and one of the 100 largest German industrial companies. For additional information please contact: Dr. Markus Richter Company spokesman HELLA GmbH & Co. KGaA Rixbecker Strasse 75 59552 Lippstadt Germany Phone: +49 (0)2941 38-7545 Fax: +49 (0)2941 38-477545 [email protected] www.hella.com --------------------------------------------------------------------------- 10.08.2018 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: HELLA GmbH & Co. KGaA Rixbecker Str. 75 59552 Lippstadt Germany Phone: +49 (0)2941 38-7125 Fax: +49 (0)2941 38-6647 E-mail: [email protected] Internet: www.hella.de/ir ISIN: DE000A13SX22 WKN: A13SX2 Indices: MDAX Listed: Regulated Market in Frankfurt (Prime Standard), Munich, Stuttgart; Regulated Unofficial Market in Berlin, Dusseldorf, Tradegate Exchange; Luxembourg Stock Exchange End of News DGAP News Service --------------------------------------------------------------------------- 712865 10.08.2018