EANS-News

Semperit AG Holding / Transformation measures lead to significant improvement of operating results in Q1-Q3 2019* - Seite 2

decrease in revenue, mainly due to a paradigm change from a volume-based
strategy to a differentiated customer/product approach. Profitability was
consistently increased in the segments of the Industrial Sector due to positive
effects of the initiatives from the restructuring and transformation programme.

The decrease in revenue in the Medical Sector, on the other hand, was mainly due
to a decline in volumes sold. Business development was characterised by the
strategic decision for increased in-house production instead of traded goods and
a continuing trend towards nitrile gloves. The order situation is under
increasing pressure, as some major customers are optimising their inventories or
expanding their supplier base due to the difficult market and price situation.

In the first three quarters of 2019, total revenue recorded a year-on-year
decline of 2.7% to EUR 652.2 million. Revenue in the Industrial Sector fell by
1.5% to EUR 426.2 million and in the Medical Sector by 4.9% to EUR 226.0
million.


EBITDA up to Q3 2019 surpassed EBITDA for the full year 2018

EBITDA (earnings before interest, tax, depreciation and amortisation) rose from
EUR 41.9 million in the first three quarters of 2018 (or EUR 45.8 million,
adjusted for the negative one-off effects of EUR 3.9 million from the shutdown
of the Sempertrans site in China for the first three quarters of 2018) to EUR
56.4 million in the first three quarters of 2019. As a result, the full-year
figure for 2018 was already exceeded at the end of the third quarter. The EBITDA
margin increased from adjusted 6.8% to 8.6% in the first three quarters of 2019
and thus reflects the profitability improved by the restructuring and
transformation process.

At EUR 25.1 million, the cash-effective investments in tangible and intangible
assets in the first three quarters of 2019 were below the previous year's level
of EUR 57.7 million.


Industrial Sector: transformation process shows clear effects

The declining demand due to the economic situation had an impact on the
Industrial Sector (Semperflex, Sempertrans and Semperform segments), among
others. Overall, revenue in the Sector fell by 1.5% from EUR 432.7 million to
EUR 426.2 million in the first three quarters of 2019. EBITDA increased by
+34.0% to EUR 74.7 million and therefore exceeded the total annual results of
2018 after only nine months. The EBITDA margin improved from 12.9% to 17.5%.


Medical Sector: further operating improvements

In the Sempermed segment, revenue in the first three quarters of 2019 declined