EANS-News

Semperit AG Holding / Semperit impacted by weak market environment and one-off effects in 2016 - Seite 2

at the end of 2016 after EUR 126.4 million at the end of 2015.

The Management Board will propose a dividend of EUR 0.70 per share
(2015: EUR 1.20 per share) for 2016 to the Annual General Meeting.
This dividend proposal is based on the assumption that there will be
a closing of the joint venture transaction. If the transaction fails
to be closed, the Management Board reserves the right to propose a
resolution to the Annual General Meeting that deviates from this
dividend proposal.

Industrial Sector: solid development in difficult markets The
Industrial Sector (Semperflex, Sempertrans and Semperform segments)
developed better than the market despite a weak economic environment.
Volume growth and market share gains were achieved in almost all
product areas. All production sites were well utilised. Revenue of
the Industrial Sector declined only slightly in 2016 from EUR 521.0
million to EUR 506.4 million (-2.8%) despite partially significantly
declining sales markets. EBITDA fell by 4.2% to EUR 89.5 million.

Medical Sector burdened by margin pressure and one-off effects The
Medical Sector (Sempermed segment) was burdened by increased margin
pressure and one-off effects of the joint venture transaction. In
addition, start-up costs relating to the ongoing capacity expansion
in Malaysia had a negative effect on earnings. Semperit counteracted
with comprehensive efficiency and cost optimisation programmes as
well as a focused marketing and sales strategy.With the planned joint
venture transaction an overall realignment of the Sector was
introduced. Revenue of the Medical Sector decreased in 2016 by 12.1%
to EUR 346.0 million. EBITDA declined to EUR 6.6. million (after EUR
29.4 million).

Outlook 2017 After having reached the lowest point in 2016 in the
sales markets that are relevant for Semperit, the company expects a
moderate improvement of market conditions in the course of 2017. Due
to the rising trend of raw material prices as well as better economic
forecasts, the generally low demand in the industrial field is likely
to recover slowly. Demand in the medical field, which is largely
independent of economic cycles, is expected to continue to increase
in 2017. On the supply side, the glove market continues to face
overcapacities, which leads to further price and margin pressures.

For 2017, Semperit expects a largely stable sales development with
good capacity utilisation and positive one-off effects on earnings in
connection with the joint venture transaction. The expected closing
of the joint venture transaction - taking into account a non-cash
reduction of goodwill - will have positive one-off effects amounting