DGAP-News

SAF-HOLLAND S.A. increases organic sales in the third quarter of 2016 - Seite 2

related expenses in the third quarter totaling EUR 2.5 million for the
acquisition of the Brazilian suspension specialist KLL and the takeover
offer for the Swedish company Haldex AB, which was withdrawn at the end of
August. The adjusted EBIT margin was 8.4% (previous year: 9.3%) and would
have amounted to 8.8% excluding the one-time write-down. At 8.9% (previous
year: 9.0%), the adjusted EBIT margin for the nine-month period 2016
remained at the prior year's high level.

Haldex offer affects 2016 third quarter finance result
The finance result in the third quarter of 2016 improved year-on-year to
EUR -3.4 million (previous year: EUR -3.9 million) and was influenced by
measurement effects in connection with the takeover offer for Haldex. The
fair value assessment of the Haldex shares held by SAF-HOLLAND resulted in
finance income of EUR 6.7 million, which was offset by EUR 6.1 million in
transaction-related expenses for the required hedging of the purchase price
offered for Haldex in Swedish krona and one-time other transaction-related
finance expenses in the amount of EUR 0.9 million. The balance of interest
income and expenses increased to EUR -3.1 million (previous year: EUR -2.0
million). The finance result for the nine-month period amounted to EUR
-10.3 million (previous year: EUR -2.5 million). The change in the finance
result on the one hand resulted from the absence of EUR 5.0 million in
unrealized and non-cash exchange rate gains from the valuation of
intercompany foreign currency loans contained in the prior year's results.
This item no longer had an appreciable effect on results in 2016. Besides
net interest expenses came in higher at EUR 8.5 million (previous year: EUR
6.3 million).

Adjusted result for the period in the third quarter of 2016 at EUR 13.4
million
The acquisition-related expenses and the write-down were the main reason
that the result before tax in the third quarter of 2016 of EUR 13.7 million
(previous year: EUR 17.3 million) came in below the prior year's level. The
Group's result before tax in the first nine months amounted to EUR 51.4
million (previous year: EUR 63.2 million). The 2016 third quarter result
for the period due to a lower tax rate posted a lower decline in percentage
terms than the result before tax and decreased 9.4% to EUR 10.6 million
(previous year: EUR 11.7 million). Excluding the one-time acquisition-
related expenses for Haldex and KLL the third quarter's adjusted result for
the period amounted to EUR 13.4 million (previous year: EUR 14.0 million),
despite the after-tax negative effect of EUR 0.7 million from the write-
down. Based on an unchanged number of 45.4 million shares outstanding,