EQS-Adhoc: H&R GmbH & Co. KGaA: Preliminary business results 2022

Insider information pursuant to Article 17 of the Market Abuse Regulation [MAR]

H&R GmbH & Co. KGaA: Preliminary business results 2022

• Provisional operating results (EBITDA) of EUR 124,9 million exceeds last forecast

Salzbergen, Germany, February 10, 2023. H&R GmbH & Co. KGaA (H&R KGaA for short; DE000A2E4T77) once again achieved a strong operating result (EBITDA - consolidated earnings before income taxes, other financial income and expenses, and amortization, depreciation, and impairment losses and reversals of impairment losses on intangible assets and property, plant, and equipment) of EUR 124.9 million in fiscal year 2022 according to preliminary calculations (2021: EUR 132.5 million). Based on the second-best EBITDA to date, EBIT came in at EUR 69.6 million (2021: EUR 81.6 million), while earnings before taxes (EBT) amounted to EUR 62.0 million (2021: EUR 73.4 million). At the bottom line, consolidated earnings attributable to shareholders amounted to EUR 42.4 million (2021: EUR 50.2 million). The result was achieved on sales of EUR 1,576.0 million, which was around 32.6% more than in the previous year (2021: EUR 1,188.4 million) due to price factors.

Despite major uncertainties and market volatility, overall a successful year for H&R

Above all, the invasion of Ukraine by Russian troops had a significant impact on business and market conditions for 2022. The necessary supply of raw materials was quickly and successfully addressed by H&R, so that serious consequences of the war on the basic business operations were largely absent. Nevertheless, higher raw material costs, rising prices for energy and gas, as well as distortions and difficulties within the logistics chains presented challenges to the chemical industry and its customer industries. However, H&R positioned itself stably in the market as a reliable partner. Q4/2022 contributed a slightly higher preliminary operating result of EUR 21.6 million to the full-year EBITDA (Q4/2021: EUR 21.3 million). Developing into the opposite directions were the other earnings levels: EBIT and EBT in the fourth quarter, at EUR 6.1 million and EUR 3.8 million respectively, fell short of the previous year (Q4/2021: EUR 8.3 million and EUR 6.3 million). Consolidated net income attributable to shareholders of EUR 2.3 million was lower than previous year (Q4/2021: EUR 3.2 million). On a quarterly basis, the Company generated sales of EUR 351.5 million, an increase of 13.3% compared to the same period of the previous year (Q4/2021: EUR 310.3 million).

High net working capital requirements again put pressure on operating cash flow in 2022

At EUR 37.5 million, cash flow from operating activities for the year as a whole remained roughly at the level of the previous year (2021: EUR 37.4 million), despite lower net profit and higher depreciation and amortization. However, a better development was prevented by the higher price for our input materials, which resulted in a still high net working capital requirement. Higher cash outflows for investments additionally burdened free cash flow, which declined from EUR -11.1 million to EUR -34.9 million.

By contrast, the development for Q4/2022 was much more positive: At EUR 46.5 million, operating cash flow was significantly higher than in the same quarter of the previous year (EUR 24.3 million). At the same time, free cash flow also recovered significantly to EUR 25.4 million (Q4/2021: EUR 14.4 million).

Balance sheet total at the end of fiscal 2022 amounted to EUR 962.4 million (Dec. 31, 2021: EUR 874.4 million). Equity at the balance sheet date amounted to EUR 471.2 million (Dec. 31, 2021: EUR 408.5 million). The equity ratio is 49.0% (Dec. 31, 2021: 46.7%).

For a complete presentation of the business development including the segment reporting and the annual financial statements, H&R KGaA refers to the publication of the 2021 annual report on March 31, 2023.

Contact:
H&R GmbH & Co. KGaA, Head of Investor Relations / Communication, Ties Kaiser
Neuenkirchener Straße 8, 48499 Salzbergen
Phone.: +49 40 43218-321, Fax: +49 40 43218-390
Mail: ties.kaiser@hur.com
www.hur.com

H&R GmbH & Co. KGaA:
H&R KGaA is a specialty-chemicals company listed on the Frankfurt Stock Exchange's Prime Standard segment. It develops and manufactures crude-oil-based chemical and pharmaceutical specialty products and produces high-precision plastic parts.

Forward-looking statements and forecasts:
This insider information pursuant to Article 17 of the Market Abuse Regulation [MAR] contains forward-looking statements. The statements are based on the current estimates and forecasts by the Management Team and the information available to it at this time. These forward-looking statements do not provide any warranty for the future developments and results contained therein. The future developments and results are dependent on a number of factors; they entail various risks and contingencies and are based on assumptions which could prove to be incorrect. We do not assume any responsibility for updating the forward-looking statements contained in this insider information pursuant to Article 17 of the MAR.

1556713  10-Feb-2023 CET/CEST