DGAP-Adhoc

H&R GmbH & Co. KGaA: Operating income significantly higher than prior-year figure - Seite 2

higher than in 2015.

Sales volumes continued to be high and customer demand strong in the fourth
quarter

Even at the end of 2016, there was hardly any decline in business and the
company continued to benefit from a high level of demand, operating at full
capacity utilization. Thanks to this trend, in the fourth quarter of 2016,
EBITDA reached EUR 21.8 million, exceeding the positive prior-year level
(Q4 2015: EUR 20.1 million) by a further EUR 1.7 million. EBIT also
improved significantly, from EUR 6.0 million in Q4 2015 to EUR 8.5 million
in the fourth quarter. During the final quarter of 2016, earnings before
taxes (EBT) improved to EUR 6.1 million (Q4 2015: EUR 0.0 million). In the
fourth quarter of 2016, net profit to shareholders increased by EUR 3.0
million, turning the negative prior-year figure of EUR -2.2 million into a
slightly positive EUR 0.8 million.

Compared with the prior-year period, the company's sales revenues for the
quarter rose by 9.2% to EUR 237.4 million (Q4 2015: EUR 217.3 million), due
to higher commodity prices.

Cash flow for 2016 increases significantly

In the fourth quarter of 2016, operating cash flow decreased from EUR 22.7
million to EUR 8.5 million due to changes in net working capital relating
to the reporting date. Free cash flow was slightly negative, at EUR -1.9
million (Q4 2015: EUR 8.1 million).

For 2016 as a whole, though, operating cash flow increased considerably
from EUR 56.4 million to EUR 75.5 million and free cash flow improved from
EUR 28.4 million to EUR 36.7 million.

Solid equity base

As of the end of financial year 2016, balance sheet total had increased to
EUR 648.2 million (31 December 2015: EUR 628.8 million). Due to the
company's positive economic and financial situation, equity increased to
EUR 317.4 million on the balance sheet date (31 December 2015: EUR 285.4
million). These changes were directly attributable to the higher level of
retained earnings due to the improvement in consolidated net income. The
equity ratio stands at 49.0% (31 December 2015: 45.4%).