DGAP-News

SKW Stahl-Metallurgie Holding AG: SKW Metallurgie reaches turning point in 2016 - first signs of a business recovery during the current year

DGAP-News: SKW Stahl-Metallurgie Holding AG / Key word(s): Final Results SKW Stahl-Metallurgie Holding AG: SKW Metallurgie reaches turning point in 2016 - first signs of a business recovery during the current year 27.03.2017 / 16:12 The issuer is solely responsible for the content of this announcement. SKW Metallurgie reaches turning point in 2016 - first signs of a business recovery during the current year

- Development of steel market until autumn 2016 still below expectations

- Improvement program ReMaKe yields approx. EUR 16 Mio. on earnings

- Published business figures 2016 exceed forecast with revenue of EUR 249.0 Mio. and adjusted EBITDA of EUR 11.7 Mio.

- Annual general meeting will be held on July 6, 2017 in Munich

München (Germany), March 24, 2017. In 2016, the SKW Metallurgie Group, globally leading provider of primary and secondary metallurgy solutions for the steel industry, had to cope with a decline in the global steel industry, the extent of which has even exceeded the already low expectation until autumn of 2016. Concurrently, price erosion and pressure on margins have increased in all important market segments. Also, the negative development of prices of processed core materials, an important indicator for SKW Group, has continued.

The company was able to compensate the gaps left by lacking revenue and declining margins by persistent improvement of the group-wide restructuring and efficiency improvement program ReMaKe with effects on earning of approx. EUR 16 Mio. until year end 2016. The consolidated EBITDA forecast 2016 of slightly above EUR 10 Mio. threshold was thus surpassed despite the worsened conditions of the steel crisis generating an operative EBITDA of EUR 11.9 Mio. (2015: EUR 13.2 Mio.). This result was achieved on sharply lower revenues-Guidance relevant revenue of EUR 249 Mio. compared to EUR 286 Mio. in 2015. This equals the reported revenue of EUR 228 Mio. (after adjustments, according to IFRS 5), as compared to EUR 264 Mio. in 2015. The corresponding operative EBITDA amounts to EUR 11.7 Mio., although the tonnage produced and sold was only about 4% less than the corresponding prior-year figure.