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

H&R GmbH & Co. KGaA: Preliminary business results for H1-2022

• Turnover of EUR 805.8 million significantly above the comparable half-year (EUR 558.4 million), driven by raw material prices
• EBITDA of EUR 72.8 million almost at the previous year's level (EUR 74.4 million)
• Earnings forecast for 2022 raised to a full-year EBITDA of "above EUR 100.0 million" for the time being

Salzbergen, Germany, July 26, 2022. H&R GmbH & Co. KGaA (H&R KGaA; ISIN DE000A2E4T77) defied the adverse overall circumstances at the end of the first half of 2022 and has so far remained largely unaffected by the effects of the Ukraine war. According to preliminary calculations, the Group's operating result (EBITDA*) in the second quarter was EUR 47.6 million (Q2-2021: EUR 48.7 million), which is also a strong increase compared to the start of the year. The results at the other levels were also close to the previous year's level: EBIT closed at EUR 34.2 million after last year's EUR 36.0 million. Earnings before taxes (EBT) in Q2-2022 were EUR 32.6 million (Q2-2021: EUR 33.2 million), and the company's consolidated net profit for shareholders closed at EUR 21.6 million (Q2-2021: EUR 23.7 million). Revenues in the second quarter of the current financial year increased to EUR 444.0 million (Q2-2021: EUR 317.1 million) due to raw material prices.

Looking at the first half of 2022 as a whole, the company provisionally achieved an operating result (EBITDA*) of EUR 72.8 million (first half of 2021: EUR 74.4 million). With slightly higher depreciation and amortisation compared to the previous year, the results also remained pleasingly strong in the six-month view: EBIT amounted to EUR 46.2 million (first half of 2021: EUR 49.1 million). Earnings before taxes (EBT) were also stable at EUR 42.9 million (first half of 2021: EUR 44.5 million). Consolidated net income attributable to shareholders closed at EUR 29.7 million (first half of 2021: EUR 31.0 million). H&R KGaA thus generated earnings per share of EUR 0.80, including EUR 0.58 in the second quarter of 2022 alone (H1-2021: EUR 0.83; Q2-2021: EUR 0.64). With strong sales in the second quarter of 2022, revenues of EUR 805.8 million exceeded the comparable figure for the previous year (H1-2021: EUR 558.4 million).

Thus, since the beginning of the year, H&R KGaA's results have remained largely unaffected by the effects of the Ukraine war and the resulting consequences (for example, for its own raw material supply, the reactions of the customer markets and the development of prices and margins).

The main contribution to the result came from the ChemPharm Refining segment. The activities of our two specialty refineries recorded slightly lower operating results overall this year, with EUR 35.9 million in Q2 and EUR 54.9 million in H1 (Q2-2021: EUR 41.4 million; H1-2021: EUR 58.9 million). Sales in the first half of the year were significantly higher than the previous year at EUR 534.3 million (H1-2021: EUR 352.0 million) and were mainly due to the passing on of the sharp increase in raw material prices. The ChemPharm Sales segment improved to an EBITDA of EUR 12.1 million in Q2-2022 (Q2-2021: EUR 7.6 million). The segment also reported an improved result for the 6-month period of EUR 18.7 million (H1-2021: EUR 15.2 million), partially offsetting the decline in the ChemPharm Refining segment. Sales in the segment also increased strongly, reaching EUR 259.9 million for the first half of the year (H1 2021: EUR 190.7 million). The Plastics segment generated an operating result of EUR 1.4 million, EUR -0.4 million lower than in the first half of the previous year; at the quarterly level, the reduction amounted to EUR -0.3 million. The achieved operating income was EUR 0.6 million. At EUR 10.5 million and EUR 21.1 million, respectively, revenue also declined slightly compared to the previous year's figures (Q2-2021: EUR 10.6 million; H1-2021: EUR 21.5 million).

The operating cash flow for the first half of 2022 shows the massive effects of the increased raw material costs. In total, it amounted to EUR 3.5 million in the second quarter of 2022 (Q2-2021: EUR 5.1 million), while free cash flow was EUR -10.3 million (Q2-2021: EUR -12.2 million). The half-year results were correspondingly muted, with operating cash flow at EUR -1.3 million (H1-2021: EUR 1.1 million) and free cash flow at EUR -28.7 million (H1-2021: EUR -24.5 million).

Balance sheet total increased from EUR 874.4 million to EUR 1,032.5 million compared to 31 December 2021, while equity increased from EUR 408.5 million to EUR 464.4 million in the same period. As at 30 June 2022, the company's equity ratio was 45.0% (31 December 2021: 46.7%).

The company had a stable start to the financial year and took advantage of the dynamic markets, especially in the second quarter. Overall, it can be stated that the company has already achieved a significant part of the total EBITDA expectation of € 80.0 million to € 95.0 million. It remains to be seen to what extent the situation in Eastern Europe will have a stronger impact on the Western industrial nations. In particular, a supply stop of Russian gas could have a lasting impact on German industry as a whole. Nevertheless, based on current knowledge, we are optimistic and expect EBITDA for 2022 to be above the EUR 100.0 million mark. The final financial figures as well as further information on the business development so far in 2022 will be published as planned on 15 August 2022 in the half-year report.

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.