R. Stahl AG, DE000A1PHBB5

R. Stahl AG, DE000A1PHBB5

09.08.2018 - 07:06:12

R. STAHL publishes figures for Q2 2018: Improved profitability and financials driven by higher sales and efficiency measures

PRESS RELEASE

R. STAHL publishes figures for Q2 2018: Improved profitability and financials driven by higher sales and efficiency measures

Sales grew 5.6 percent year-on-year to EUR70.5 million EBITDA pre exceptionals increased significantly to EUR4.2 million Strong free cash flow brings down net debt to a three-year low Equity ratio improved to 26.8 percent quarter-on-quarter Efficiency program R. STAHL 2020 advancing according to plan Outlook for EBITDA pre 2018 lifted towards the upper half of the previous corridor

Waldenburg, 9 August 2018 - R. STAHL, leading supplier of products and systems for explosion protection, today publishes figures for the second quarter 2018.

As a result of increasing sales and a slightly improved cost structure, R. STAHL's profitability and financial position was strengthened significantly. "In the first half of the year, our expectation that our markets should stabilize on a moderate level was confirmed. At the same time, our measures to improve efficiency in our structures and processes are bearing fruits and increasingly contribute positively to our financial statements", said R. STAHL's CEO, Dr. Mathias Hallmann. "Despite this promising development in the past quarter, however, it also becomes very clear that we are still at the beginning of a long way - which we will continue to pursue consistently", Dr. Hallmann added.

In the past quarter, R. STAHL achieved sales of EUR70.5 million, representing a year-on-year increase of 5.6% (Q2 2017: EUR66.8 million). The regional development was a mixed bag. Business in Germany increased significantly, with growth of 36.8% to EUR19.0 million (Q2 2017: EUR13.9 million). The primary contributors to this were important completions and deliveries in respect of a major order for control cabinets for a petrochemical plant complex in Eastern Europe. Sales came in slightly below the previous year's figure in the Central region - consisting of Africa and Europe excluding Germany - with a decrease of 2.3% to EUR29.5 million (Q2 2017: EUR30.1 million). Business in the Americas region developed more positively. Here, the declining trend of the past eleven quarters was halted and sales increased again for the first time, with a year-on-year rise of 6.0% to EUR7.9 million (Q2 2017: EUR7.5 million). In Asia, sales declined by 7.5% year-on-year, to EUR14.1 million (Q2 2017: EUR15.2 million). The good sales recognition from existing orders, along with incoming orders of EUR67.3 million in Q2 2018, resulted in a slight decrease in order backlog at the end of the period under review, to EUR89.2 million (order backlog on 31 March 2018: EUR92.5 million).

Similarly to sales, total operating performance also increased in Q2 2018, improving by 3.4% to EUR68.9 million. Other operating income increased to EUR3.1 million (Q2 2017: EUR1.7 million). With 35.6%, the cost of materials ratio remained at previous year's level (Q2 2017: 35.7%). Personnel costs decreased significantly to EUR30.0 million, or by 4.2% (Q2 2017: EUR31.3 million), while the number of employees came down to 1,722 at the end of the period under review (30 June 2017: 1,775 employees). Other operating expenses rose 16.4% to EUR15.5 million (Q2 2017: EUR13.3 million), driven primarily by costs related to the implementation of the R. STAHL 2020 efficiency program. Earnings before interest, tax, depreciation and amortization (EBITDA) improved to EUR2.0 million in the quarter under review (Q2 2017: EUR-0.1 million). EBITDA pre exceptionals developed even more positively, recording a significant year-on-year increase to EUR4.2 million (Q2 2017: EUR0.4 million). Earnings before interest and taxes (EBIT) increased by EUR2.3 million to EUR-1.0 million (Q2 2017: EUR-3.3 million), and net profit improved to EUR-1.5 million (Q2 2017: EUR-3.1 million) and earnings per share to EUR-0.22 (Q2 2017: EUR-0.47).

As a result of a focused cash management, working capital was reduced by EUR7.0 million (Q2 2017: EUR0.8 million), driving free cash flow up EUR8.6 million to EUR6.0 million in the quarter under review (Q2 2017: EUR-2.6 million). At the end of Q2 2018, net debt reached a three-year low of EUR16.9. The equity ratio improved to 26.8 percent quarter-on-quarter (31 March 2018: 26.0 percent).

Outlook for 2018 Sales have increased slightly in the first six months of 2018 compared to the same period in the previous year, confirming the recovery we expected in the market for explosion protected products. In addition, the implementation of the R. STAHL 2020 efficiency program is bearing fruits and already yields improvements in our cost structures. In combination with the solid order backlog at the end of the period under review, we therefore expect to achieve an increase in EBITDA pre exceptionals in 2018 in the high double-digit percentage range, representing the upper half of our previous guidance corridor.

Key figures of R. STAHL Group pursuant to IFRS

in EUR thousand Q2 2018 Q2 2017 Change in % 6M 2018 6M 2017 Change in % Sales 70,506 66,769 +5.6 136,226 132,256 +3.0 Germany 19,025 13,908 +36.8 35,016 29,120 +20.2 Central region 1) 29,458 30,143 -2.3 60,003 59,905 +0.2 Americas 7,923 7,473 +6.0 14,434 14,872 -2.9 Asia/Pacific 14,100 15,245 -7.5 26,773 28,359 -5.6 Order backlog as of 30 June       89,214 99,931 -10.7 EBITDA pre exceptionals 2) 4,175 377 >+100 6,467 179 >+100 EBITDA 1,988 -89 n/a 2,677 -1,129 n/a EBIT pre exceptionals 2) 1,181 -2,839 n/a 515 -5,983 n/a EBIT -1,006 -3,305 +69.6 -3,275 -7,291 +55.1 Net profit -1,469 -3,052 +51.9 -4,927 -6,068 +18.8 Earnings per share (in EUR) -0.22 -0.47 +51.9 -0.76 -0.94 +18.8 Cashflow from operating activities 7,730 269 >+100 5,007 4,998 +0.2 Depreciation and amortization 2,994 3,216 -6.9 5,952 6,162 -3.4 Capital expenditures 2,308 2,917 -20.9 4,508 5,084 -11.3 Total assets as of 30 June       241,220 272,545 -11.5 Equity as of 30 June       64,539 86,463 -25.4 Equity ratio as of 30 June       26.8% 31.7%   Net debt as of 30 June 3)       16,885 27,495 -38.6 Employees as of 30 June 4)       1,722 1,775 -3.0

1) Africa and Europe excl. Germany

2) Exceptionals: restructuring charges, non-scheduled depreciation and amortization, charges for design and implementation of IT-projects, M&A costs as well as profit and loss from the disposal of non-current assets no longer required for business operations.

3) Net debt: interest-bearing financial liabilities - cash and cash equivalents

4) Excl. apprentices

Investors' and analysts' conference call of R. STAHL AG for Q2 2018

The Chief Financial Officer of R. STAHL AG, Volker Walprecht, will explain the results of Q2 2018 in an investors' and analysts' conference call today at 09:00 CET and will be available for questions and discussions afterwards. The conference call will be held in English language.

Please dial the following number to join the call and provide the following PIN as well as your full name and company when prompted:

DE: +4969222229043 UK: +442030092452 USA: +18554027766PIN: 16790194#

Along with the conference call we will provide an online presentation via the internet simultaneously. Please log on as a participant on the following website (no pass-word required):

Website: https://webcasts.eqs.com/rstahl20180809/no-audio

An audio cast will be available shortly after the conference call has ended on the company's website under the following link:

https://r-stahl.com/en/global/corporate/investor-relations/ir-news-and-publications/events-and-presentations/

Financial calendar 2018 30 August Annual General Meeting, Künzelsau-Gaisbach 8 November Interim Report Q3 2018 26 November Eigenkapitalforum, Frankfurt am Main

About R. STAHL - www.r-stahl.com R. STAHL is one of the world's leading suppliers of electrical and electronic products and systems for explosion protection. These products and systems prevent explosions in risk areas and contribute to the safety of people, machines and the environment. The portfolio ranges from products used in switching/ distributing, installing, operating/monitoring, lighting and signalling/alarming, up to automation. Typical customers operate in growth industries, such as the oil & gas industry, the chemical and pharmaceutical industries and the food industry. In 2017, 1,763 employees generated sales of EUR268.5 million. The shares of R. STAHL AG are traded on the Regulated Market/Prime Standard of Deutsche Boerse (ISIN DE000A1PHBB5).

Contact: R. STAHL AG Am Bahnhof 30, 74638 Waldenburg (Württ.) Dr. Thomas Kornek Head of Investor Relations & Corporate Communications Phone: +49 7942 943 1395 e-mail: investornews@stahl.de

09.08.2018 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: R. Stahl AG Am Bahnhof 30 74638 Waldenburg

Germany Phone: +49 (7942) 943-0 Fax: +49 (7942) 943-4333 E-mail: investornews@stahl.de Internet: www.r-stahl.com ISIN: DE000A1PHBB5 WKN: A1PHBB Listed: Regulated Market in Frankfurt (Prime Standard), Stuttgart; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Tradegate Exchange   End of News DGAP News Service

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