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

H&R GmbH & Co. KGaA: Preliminary business results for Q1-2022 published

- EBITDA of EUR 25.2 million (Q1-2021: EUR 25.7 million) almost at the previous year's level

- Significantly improved sales of EUR 361.8 million

- Currently stable earnings situation despite the Ukraine war

Salzbergen, Germany, April 25, 2022. According to preliminary calculations, H&R GmbH & Co. KGaA (Short: H&R KGaA; DE000A2E4T77) achieved an operating result (EBITDA - consolidated earnings before tax, other financial income and expenses, and depreciation/amortization, impairment and write-ups on fixed assets and property, plant and equipment) of EUR 25.2 million in the first quarter of 2022 (Q1/2021: EUR 25.7 million), and therefore almost at the level of the same quarter of the previous year. Overall, despite the war in Ukraine, the company presented itself with a stable earnings situation at the beginning of the year. EBIT was EUR 12.0 million (Q1/2021: EUR 13.2 million), earnings before taxes (EBT) were EUR 10.3 million (Q1/2021: EUR 11.3 million). The bottom line is that the Group achieved better earnings attributable to shareholders of EUR 8.1 million compared to the same quarter of the previous year (Q1/2021: EUR 7.2 million). This was achieved with sales revenues of EUR 361.8 million. This is around 50.0% more than in the previous year (Q1/ 2021: EUR 241.4 million). The primary reason for this was the effects of the war in Ukraine on the international raw materials markets, which led to higher material and energy costs and, ultimately, to higher product prices.

Current result continues to be mainly driven by refining business

The refineries in the REFINING segment continued to sell stable volumes in the first quarter of 2022. Revenue increased to EUR 235.9 million (Q1/2021: EUR 144.5 million) due to raw material prices. The segment's EBITDA was an improved EUR 19.0 million (Q1/2021: EUR 17.5 million). The international locations of our SALES segment, on the other hand, also improved strongly in sales to EUR 119.8 million (Q1/2021: EUR 87.9 million), although the result in this segment fell slightly: instead of EUR 7.6 million in the same quarter of the previous year, EBITDA of EUR 6.6 million was achieved in the first quarter of 2022. The Plastics segment achieved a positive EBITDA of EUR 0.7 million (Q1/2021: EUR 0.9 million) despite the difficult situation in the international automotive industry, which was once again due to the political situation. Here, sales of EUR 10.9 million in the previous year remained constant at EUR 10.6 million in Q1/2022.

Cash flow under pressure in Q1/2022

With a lower consolidated result of EUR 7.8 million (Q1/2021: EUR 8.0 million), the operating cash flow in the first quarter of 2022 remained negative at EUR -4.8 million (Q1/2021: EUR -4.0 million). The primary cause was the development of the raw material price, which led to a higher net working capital requirement. The free cash flow also closed negatively at EUR -18.4 million (Q1/2021: EUR -12.3 million).

Equity base remains solid
Total assets increased to EUR 972.3 million at the end of the first quarter of 2022 (December 31, 2021: EUR 874.4 million). High production capacity utilization at the refinery sites and rising raw material costs resulted in higher inventories and higher trade receivables on the assets side, while trade payables increased on the liabilities side. The equity of the company was EUR 429.1 million as of the balance sheet date (December 31, 2021: EUR 408.5 million). It quoted at 44.1% (December 31, 2021: 46.7%).

For a complete presentation of the business development, including segment reporting and the quarterly financial statements, H&R KGaA refers to Quarterly Statement 1/2022, which will be published on May 13, 2022.

Contact:
H&R GmbH & Co. KGaA, Head of Investor Relations / Communication, Ties Kaiser
Neuenkirchener Straße 8, 48499 Salzbergen
Phone.: +49 40 43218-321, Fax: +49 40 43218-390
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.