EANS-News: Semperit AG Holding / Semperit impacted by weak market environment and one-off effects in 2016

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Financial Figures/Balance Sheet

- Revenue at EUR 852.4 million (-6,8%) below prior-year's level -
Earnings development in 2016 impacted by one-off effects - Largely
stable sales development and significantly positive one-off effects
through joint venture transaction expected for 2017 - Operational
earnings development without one-off effects impacted by increase in
raw material prices and elimination of earnings contribution of Siam
Sempermed in 2017

In 2016, the business development of the publicly listed Semperit
Group was characterised by a persistently difficult market
environment in the Industrial and Medical Sectors. While the
Industrial Sector performed well contrary to the market trend,
one-off effects relating to the planned termination of the joint
ventures with the Thai Sri Trang-Agro Industry Public Co Ltd Group
("joint venture transaction") and high margin pressure burdened the
earnings development. In 2017, high positive one-off effects from
this transaction are expected in return.

In the financial year 2016, the group's revenue of EUR 852.4 million
was 6.8% below the previous year's value of EUR 914.7 million. The
adjusted EBITDA (without one-off effects) declined by 14.1% to EUR
82.6 million (after EUR 96.2 million). The adjusted EBIT at EUR 49.0
million also showed a downward trend compared to the previous year at
EUR 66.7 million. The adjusted EBITDA margin was 9.7% (after 10.5%)
and the adjusted EBIT margin was 5.7% (after 7.3%). The adjusted
earnings after tax declined from EUR 46.4 million to EUR 23.1 million
due to negative foreign currency effects and higher interest
expenses. The adjusted earnings per share fell accordingly to EUR
1.12 (after EUR 2.26).

The non-cash one-off effects relating to the joint venture
transaction totalled EUR -31.9 million. Considering these one-off
effects, EBITDA was EUR 77.9 million and EBIT EUR 27.3 million.
Earnings after tax amounted to EUR -8.8 million and earnings per
share to EUR -0.43.

In 2016, Semperit invested a total of EUR 65.1 million (after EUR
71.8 million) to expand and modernise its production plants. With an
equity ratio of 31.8% (31 December 2015: 38.7%), Semperit continued
to have a solid capital structure at the reporting date. Despite high
investments, cash and cash equivalents increased to EUR 190.2 million
at the end of 2016 after EUR 126.4 million at the end of 2015.

The Management Board will propose a dividend of EUR 0.70 per share
(2015: EUR 1.20 per share) for 2016 to the Annual General Meeting.
This dividend proposal is based on the assumption that there will be
a closing of the joint venture transaction. If the transaction fails
to be closed, the Management Board reserves the right to propose a
resolution to the Annual General Meeting that deviates from this
dividend proposal.

Industrial Sector: solid development in difficult markets The
Industrial Sector (Semperflex, Sempertrans and Semperform segments)
developed better than the market despite a weak economic environment.
Volume growth and market share gains were achieved in almost all
product areas. All production sites were well utilised. Revenue of
the Industrial Sector declined only slightly in 2016 from EUR 521.0
million to EUR 506.4 million (-2.8%) despite partially significantly
declining sales markets. EBITDA fell by 4.2% to EUR 89.5 million.

Medical Sector burdened by margin pressure and one-off effects The
Medical Sector (Sempermed segment) was burdened by increased margin
pressure and one-off effects of the joint venture transaction. In
addition, start-up costs relating to the ongoing capacity expansion
in Malaysia had a negative effect on earnings. Semperit counteracted
with comprehensive efficiency and cost optimisation programmes as
well as a focused marketing and sales strategy.With the planned joint
venture transaction an overall realignment of the Sector was
introduced. Revenue of the Medical Sector decreased in 2016 by 12.1%
to EUR 346.0 million. EBITDA declined to EUR 6.6. million (after EUR
29.4 million).

Outlook 2017 After having reached the lowest point in 2016 in the
sales markets that are relevant for Semperit, the company expects a
moderate improvement of market conditions in the course of 2017. Due
to the rising trend of raw material prices as well as better economic
forecasts, the generally low demand in the industrial field is likely
to recover slowly. Demand in the medical field, which is largely
independent of economic cycles, is expected to continue to increase
in 2017. On the supply side, the glove market continues to face
overcapacities, which leads to further price and margin pressures.

For 2017, Semperit expects a largely stable sales development with
good capacity utilisation and positive one-off effects on earnings in
connection with the joint venture transaction. The expected closing
of the joint venture transaction - taking into account a non-cash
reduction of goodwill - will have positive one-off effects amounting
to EUR 85-95 million on the EBITDA and EBIT bases as well as around
EUR 65-75 million of earnings after tax.

Semperit continues to expect a cash inflow from the joint venture
transaction of around USD 200 million (around EUR 187 million) before
taxes, of which a major part has been hedged against currency
fluctuations. Semperit thus strengthens its capital base and promotes
investments for further growth. From today's perspective, the
adjusted EBIT (without one-off effects from the joint venture
transaction) for the financial year 2017 will be below the adjusted
EBIT of 2016 (EUR 49 million). The main reason for this are
increasing raw material prices, which in both Sectors can probably
only be passed on to the customers with a delay, and the elimination
of the earnings contribution of Siam Sempermed Corporation Ltd.
caused by the joint venture transaction. Furthermore, the currently
high utilisation of production capacities reduces the positive
effects of the expected market recovery on the sales development in
the Industrial Sector.

The strategic orientation will remain unchanged in 2017. Semperit
will continue to focus on organic growth as well as operational
earnings improvements in the Medical Sector. Investments in the
expansion of capacities will be continued. In the Industrial Sector,
the production capacities for hoses in Odry, Czech Republic, for
conveyor belts in Be?chatów, Poland, as well as for window and door
profiles in Germany will be expanded. In the Medical Sector, the
focus is on the expansion of the factory in Malaysia as well as cost
savings and efficiency enhancements. Total capital expenditures
(CAPEX) of around EUR 80-90 million (2016: EUR 65 million) have been
planned for 2017.

The Annual report 2016 will be available at www.semperitgroup.com/ir.

Photo download: https://semperitgroup.picturepark.com/Go/wPXX3GzO

About Semperit The publicly listed company Semperit AG Holding is an
internationally-oriented group that develops, produces, and sells
highly specialised rubber and plastic products in more than 100
countries for the medical and industrial sectors: examination and
surgical gloves, hydraulic and industrial hoses, conveyor belts,
escalator handrails, construction profiles, cable car rings, and
products for railway superstructures. The headquarters of this
traditional Austrian company, which was founded in 1824, are located
in Vienna. The Semperit Group employs around 7,000 people worldwide,
including close to 3,900 in Asia and more than 800 in Austria (Vienna
and production site in Wimpassing, Lower Austria). The group has 22
manufacturing facilities worldwide and numerous sales offices in
Europe, Asia, Australia and America. In 2016, the group generated
sales of EUR 852 million and EBITDA of EUR 78 million.

Further inquiry note:
Martina Büchele
Group Communications Manager
Tel.: +43 676 8715 8621
martina.buechele@semperitgroup.com
www.semperitgroup.com

Stefan Marin
Head of Investor Relations
Tel.: +43 676 8715 8210
stefan.marin@semperitgroup.com

end of announcement euro adhoc
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company: Semperit AG Holding
Modecenterstrasse 22
A-1030 Wien
phone: +43 1 79 777-210
FAX: +43 1 79 777-602
WWW: www.semperitgroup.com
sector: Synthetics & Plastics
ISIN: AT0000785555
indexes: WBI, ATX Prime, ViDX, Prime Market, ATX GP
stockmarkets: official market: Wien
language: English

Original-Content von: Semperit AG Holding, übermittelt durch news aktuell