R. Stahl AG, DE000A1PHBB5

R. Stahl AG, DE000A1PHBB5

08.11.2018 - 07:09:46

R. STAHL publishes figures for Q3 2018: Further improved profitability and financial position as a result of growing sales and improved cost structures

PRESS RELEASE

R. STAHL publishes figures for Q3 2018: Further improved profitability and financial position as a result of growing sales and improved cost structures

Sales up 5.8 percent year-on-year to EUR69.8 million EBITDA pre nearly doubles to EUR6.3 million, for FY 2018 now expected to exceed previous guidance corridor Net debt lowered to EUR8.4 million

Waldenburg, 8 November 2018 - R. STAHL, leading supplier of products and systems for explosion protection, today publishes figures for the third quarter 2018.

Higher sales and lower costs improved R. STAHL's profitability and financial position year-on-year. "In the third quarter 2018, we again progressed with our efficiency program R. STAHL 2020 according to plan", said R. STAHL's CEO, Dr. Mathias Hallmann. "The consistent implementation of these measures will continue to be the focus of our work in the coming months", Dr. Hallmann added.

In the third quarter 2018, R. STAHL grew sales to EUR69.8 million (Q3 2017: EUR66.0 million), a year-on-year increase of 5.8%. The business in Germany developed very well, generating growth of 27.6% to EUR19.5 million (Q3 2017: EUR15.3 million), particularly as a result of completions and deliveries for a large project in Eastern Europe. The Central region - consisting of Africa and Europe excluding Germany - posted a sales decline of 6.1% year-on-year to EUR28.9 million (Q3 2017: EUR30.7 million). Business in the Americas region again developed nicely. Here, the growth momentum of the previous quarter continued, leading to an increase of sales of 24.0% year-on-year to EUR8.1 million (Q3 2017: EUR6.5 million). A major contribution came from the reorganization of our subsidiary in the USA, which was particularly able to further increase the business with customers from the chemical industry. In Asia, sales of EUR13.3 million in Q3 2018 were on par with last year (Q3 2017: EUR13.4 million).

Higher sales, improved cost structures and an exceptional income from a sale of a property in Ettlingen significantly increased earnings before interest, tax, depreciation and amortization (EBITDA) to EUR6.6 million in the quarter under review (Q3 2017: EUR1.9 million). Similarly, EBITDA pre exceptionals developed nicely and nearly doubled year-on-year to EUR6.3 million (Q3 2017: EUR3.2 million). This also translated into an increase of earnings before interest and taxes (EBIT) by EUR4.8 million to EUR3.6 million (Q3 2017: EUR-1.2 million). Net profit improved to EUR2.6 million (Q3 2017: EUR-1.5 million) and earnings per share to EUR0.40 (Q3 2017: EUR-0.24).

At the end of Q3 2018, net debt was lowered to EUR8.4 million. The equity ratio further improved to 28.2% quarter-on-quarter (30 June 2018: 26.8%).

Outlook for 2018 Our efficiency program R. STAHL 2020 continues to progress according to plan. We now expect EBITDA pre exceptionals for FY 2018 to exceed our previous guidance corridor. In the course of the implementation of further structural measures, we expect higher exceptional items in this year's final quarter. Compared to last year, 2018's net profit will improve significantly but still be in the high single-digit negative millions as expected.

Key figures of R. STAHL Group pursuant to IFRS

in EUR thousand Q3 2018 Q3 2017 Change in % 9M 2018 9M 2017 Change in % Sales 69,785 65,979 +5.8 206,011 198,235 +3.9 Germany 19,485 15,273 +27.6 54,501 44,393 +22.8 Central region 1) 28,864 30,723 -6.1 88,867 90,628 -1.9 Americas 8,105 6,538 +24.0 22,539 21,410 +5.3 Asia/Pacific 13,331 13,445 -0.8 40,104 41,804 -4.1 Order backlog as of 30 Sep.       85,509 102,121 -16.3 EBITDA pre exceptionals 2) 6,348 3,200 +98.4 12,815 3,379 >+100 EBITDA 6,603 1,885 >+100 9,280 756 >+100 EBIT pre exceptionals 2) 3,352 137 >+100 3,867 -5,846 n/a EBIT 3,607 -1,178 n/a 332 -8,469 n/a Net profit 2,564 -1,543 n/a -2,363 -7,611 +69.0 Earnings per share (in EUR) 0.40 -0.24 n/a -0.36 -1.18 +69.0 Cashflow from operating activities 6,904 11,734 -41.2 11,911 16,732 -28.8 Depreciation and amortization 2,996 3,063 -2.2 8,948 9,225 -3.0 Capital expenditures 2,601 2,442 +6.5 7,109 7,526 -5.5 Total assets as of 30 Sep.       238,960 267,909 -10.8 Equity as of 30 Sep.       67,341 84,355 -20.2 Equity ratio as of 30 Sep.       28.2% 31.5%   Net debt as of 30 Sep. 3)       8,384 18,389 -54.4 Employees as of 30 Sep. 4)       1,708 1,763 -3.1

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 Q3 2018

The Chief Financial Officer of R. STAHL AG, Volker Walprecht, will explain the results of Q3 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: +4969201744210 UK: +442030092470 USA: +18774230830PIN: 96323133#

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/rstahl20181108/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 26 November Eigenkapitalforum, Frankfurt am Main

2019 28 February   Preliminary Figures FY 2018 4 April   Bankhaus Lampe Deutschlandkonferenz, Baden-Baden 26 April   Annual Report FY 2018 9 May   Interim Report Q1 2019 7 June   26th Annual General Meeting, Künzelsau-Gaisbach 8 August   Interim Report Q2 2019 7 November   Interim Report Q3 2019

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

End of Media Release Issuer: R. Stahl AG Key word(s): Finance

08.11.2018 Dissemination of a Press Release, 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 Media

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