EANS-Adhoc

RHI AG / Provision resulting from the valuation of a long-term energy supply contract has a negative effect on earnings in 2015 and leads to improvements in the following years - dividend remains unchanged - Seite 2

Division's lower contribution to earnings is attributable to weaker
capacity utilization at the raw material plants resulting from
declining volumes in the electric arc furnace segment. In addition,
the operating EBIT was affected by negative currency translation
effects of EUR 8.9 million from the measurement of balance sheet
items, which are recognized under other expenses.

EBIT amounted to EUR 37.5 million in the past financial year and
includes a full write-down of the plant in Porsgrunn, Norway,
amounting to roughly EUR 23 million and the plant in Falconer, US,
amounting to roughly EUR 8 million as well as negative effects on
earnings of roughly EUR 58 million related to the change in valuation
of a long-term energy supply contract concluded in the year 2011. In
addition, a provision totaling roughly EUR 3 million was formed for
the closure of the plant in Clydebank, Scotland. This is contrasted
by positive effects of roughly EUR 6 million from the reversal of
provisions after the sale of the premises at the site in Duisburg,
Germany, as well as lower closure costs at the Kretz site, Germany.

Profit after income tax thus amounted to EUR 17.6 million in the
financial year 2015 after EUR 52.5 million in the previous year.
Earnings per share declined from EUR 1.28 to EUR 0.40.

Financial and Asset Position Net cash flow from operating activities
increased from EUR 72.4 million in the previous year to EUR 175.4
million in the past financial year. This development is, among other
things, due to the reduction of working capital by EUR 38.3 million
compared with the level at the end of the year 2014. Net cash flow
from investing activities amounted to EUR (47.2) million in the past
financial year and included payments related to the sale of
securities due to surplus coverage of the legally required provisions
for pensions of two companies amounting to roughly EUR 11 million as
well as payments from the sale of a 2.6% share in a German
residential property company amounting to roughly EUR 3 million. Free
cash flow, defined as the total of net cash flow from operating
activities and net cash flow from investing activities, rose from EUR
11.3 million in the year 2014 to EUR 128.2 million in the year 2015
among other things because of the reduction of working capital. The
balance sheet total of the RHI Group decreased from EUR 1,860.5
million at the end of 2014 to EUR 1,804.5 million at the end of 2015,
primarily because of the reduction of working capital and lower
financial liabilities. The RHI Group's equity amounted to EUR 491.4