Heraeus plans resurgence after two slow financial years

Hanau (ots) - The Hanau-based Heraeus precious metals and
technology group finished financial year 2013 with satisfactory
results despite some lower numbers. This was announced by the Heraeus
Holding GmbH Board of Management at a press conference on annual
results held in Frankfurt on May 8. The slowing pace of growth in
China - an important market for Heraeus - combined with continued
market uncertainty in Europe and the United States as well as lower
precious metals prices to depress revenue and earnings for the
Heraeus Group again this past year. Heraeus had total product revenue
of EUR 3.6 billion (10 percent less than in 2012). However, this
outcome was greatly influenced by precious metals price effects.
Adjusted for these effects, revenues for 2013 show a slight increase,
up by 2 percent over the previous year. Weak industrial demand for
platinum, gold and silver pulled precious metals trading revenue down
to EUR 13.5 billion (-16 percent).

Operating results (EBIT) fell by 29 percent, ending at EUR 256
million. This was mainly attributable to continued stagnation in the
photovoltaics market, one-time effects of restructuring measures, and
expenditures for the IT-based Magellan process harmonization program.
By contrast, the annual result for the Heraeus Group was distinctly
positive, at EUR 454 million (+92 percent over 2012). This increase
reflects proceeds from the sale of the Heraeus Dental business group
during the past financial year.

"Heraeus was not entirely immune to the fairly restrained
macroeconomic environment of the past year, although the significant
declines in product revenue and operating results are largely
attributable to lower precious metals prices and one-time effects,"
said Jan Rinnert, chairman of the Heraeus Holding GmbH Board of
Management in summary. "Given this background, we feel a certain
level of satisfaction with financial year 2013, but we are planning
on significant growth in the future."

Outlook

Overall, the Heraeus Group is on target for the current year. The
first-quarter results reflect this, with some business groups off to
a strong start for 2014 while others remain rather restrained. There
is every likelihood that the uncertain overall economic situation the
Heraeus Group navigated in 2013 will continue in the current fiscal
year.

"On the whole, however, we expect improvement in the operating
results for 2014. The Heraeus Group is currently implementing
numerous initiatives and measures to enhance efficiency and improve
margins, giving reason for optimism. The associated costs were
already included in the results for 2013," said Jan Rinnert.

Key financial indicators for financial year 2013

|Key financial indicators |2013 |2012 |Change in|
|in EUR million | | |% |
|Product revenue |3,578 |3,979 |-10 |
|Precious metals trading revenue |13,462 |15,989 |-16 |
|Earnings before interest |256 |360 |-29 |
|and taxes (EBIT) | | | |
|Net income |454 |237 |+91 |
|Shareholders' equity |2,667 |2,344 |+14 |
|Capital expenditures |141 |126 |+13 |
|R&D expenditures |86 |84 |+2 |
|Employees at year-end |12,454 |13,615 |-9 |

Heraeus, the precious metals and technology Group headquartered in
Hanau, Germany, is a global, private company with more than 160 years
of tradition. We create high value solutions for our customers,
strengthening their competitiveness for the long term. Our fields of
competence include precious metals, materials and technologies,
sensors, biomaterials and medical products, quartz glass, and
specialty light sources. In fiscal year 2013, Heraeus had product
revenue of EUR 3.6 billion and precious metals trading revenue of EUR
13.5 billion. With more than 12,500 employees in over 110
subsidiaries worldwide, Heraeus holds a leading position in its
global markets.

Service: The current annual report can be found at:
http://konzern.heraeus.de/Geschaeftsbericht

Current photo materials can be found at: www.heraeus-media.com/Public

For additional information, please contact:
Bettina Lichtenberg
Head of Corporate Communications
Heraeus Holding GmbH
Heraeusstraße 12-14
63450 Hanau, Germany
Tel. +49 (0) 6181.35-5100
F +49 (0) 6181.35-4242
bettina.lichtenberg@heraeus.com
www.heraeus.com