RHI Magnesita

Result influenced by one-off effects in Q2

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Mid Year Results/6-month report

2nd Quarter
In the second quarter of 2013, RHI Group's revenues rose by 4.6% compared with
the previous quarter and amounted to EUR 445.2 million. While revenues of the
Industrial Division decreased by 7.5% due to the seasonally weak cement
business, the Steel Division recorded an 11.6% increase due to the integration
of the Indian company Orient Refractories Ltd., which was acquired at the end of
April, into the reporting of the RHI Group.
The operating result amounted to EUR 27.2 million in the past quarter and is
adversely affected by negative currency effects and expenses related to the
changes in the Management Board of RHI AG adding up to roughly EUR 11 million.
Compared with the operating result of the first quarter of 2013 of EUR 49.4
million, this is equivalent to a decrease by 44.9%. The operating result margin
fell from 11.6% to 6.1%.
EBIT amounted to EUR 84.0 million in the second quarter of 2013 and is
influenced by positive effects from the termination of the Chapter 11
proceedings amounting to EUR 75.8 million and the formation of provisions for
restructuring related to the announced closure of the plant in Duisburg,
Germany, amounting to EUR 19.0 million. The EBIT margin improved significantly
from 11.6% in the first quarter of 2013 to 18.9%. The tax rate was at 20.0% in
the second quarter of 2013. The tax rate calculated from the cash flow item
"income taxes paid" amounted to 13.0%.
Equity amounted to EUR 525.6 million at the balance sheet date on June 30, 2013,
after EUR 480.5 million at December 31, 2012. Consequently, the equity ratio
rose from 26.0% at the end of the financial year 2012 to 28.8% at the end of the
first half of 2013. Cash and cash equivalents decreased from EUR 152.4 million
in the first quarter of 2013 to EUR 121.3 million, which was, among other
things, due to the dividend payment of EUR 29.9 million.
Net debt increased from EUR 444.6 million to EUR 464.2 million. As a result, the
gearing ratio was up slightly from 86.9% to 88.3%. Net cash flow from operating
activities amounted to EUR 25.5 million in the past quarter, and cash flow from
investing activities to EUR (8.3) million.

in EUR million             Q2/2013 Q1/2013 Delta     Q2/2012 Delta
Revenues                   445.2   425.5   4.6%      475.9   (6.5)%
EBITDA                     102.2   65.9    55.1%     60.6    68.6%
EBITDA margin              23.0%   15.5%   7.5pp     12.7%   10.3pp
Operating result 1)        27.2    49.4    (44.9)%   48.7    (44.1)%
Operating result margin    6.1%    11.6%   (5.5)pp   10.2%   (4.1)pp
EBIT                       84.0    49.4    70.0%     44.1    90.5%
EBIT margin                18.9%   11.6%   7.3pp     9.3%    9.6pp
Profit before income taxes 75.6    40.8    85.3%     38.1    98.4%
Profit                     60.5    22.8    165.4%    30.3    99.7%

1) EBIT before restructuring costs and result from Chapter 11 proceedings
First half-year
Revenues in the first half of 2013 were down 4.6% on the first half of 2012 and
amounted to EUR 870.7 million. Although sales volume of the Steel Division
declined by 7.7% in a challenging market environment, the decrease in revenues
was more moderate, at 5.7%, because of price adjustments and an improved product
mix. Revenues in the Industrial Division dropped by 1.5% due to weaker project
business in the business unit Environment, Energy, Chemicals.   
The 6.9% decline in the operating result to EUR 76.6 million is attributable to
a weaker performance of the Raw Materials Division and the one-off expenses
recorded in the second quarter. The operating result margin amounted to 8.8% in
the first half of 2013, after 9.0% in the same period of the previous year.

Due to one-off effects related to the termination of the Chapter 11 proceedings
and the closure of the plant in Duisburg, Germany, totaling EUR 56.8 million,
EBIT rose from EUR 77.7 million to EUR 133.4 million. The EBIT margin
consequently rose from 8.5% to 15.3%.

in EUR million             H1/2013  H1/2012  Delta        
Revenues                   870.7    912.8    (4.6)%       
EBITDA                     168.1    108.2    55.4%        
EBITDA margin              19.3%    11.9%    7.4pp        
Operating result 1)        76.6     82.3     (6.9)%       
Operating result margin    8.8%     9.0%     (0.2)pp      
EBIT                       133.4    77.7     71.7%        
EBIT margin                15.3%    8.5%     6.8pp        
Profit before income taxes 116.4    73.5     58.4%        
Profit                     83.3     62.3     33.7%        

1) EBIT before restructuring costs and result from Chapter 11 proceedings
In a stable macroeconomic environment and with unchanged exchange rates, RHI
expects similar revenues in the Steel Division for the third quarter of 2013 as
in the second quarter of 2013, and higher revenues in the Industrial Division as
projects are expected to be delivered in the business units environment, energy,
chemicals and nonferrous metals. The operating result margin is expected to
exceed the level of the second quarter of 2013 despite the problems that
occurred during causter loading in the newly established fusion plant in Norway.

RHI still expects revenues at the level of the previous year for the full year
2013. However, realizing the operating result margin of the year 2012 appears to
be challenging in view of the one-off expenses in the second quarter as well as
the negative effects from Norway, which are expected for the second half of the
year. As a result of the positive effects from the closing of the Chapter 11
proceedings, the EBIT margin will continue to significantly exceed the
prior-year level.
The report on the first quarter of 2013 is available on RHI's website www.rhi-

Further inquiry note:
Investor Relations
Mag. Simon Kuchelbacher
Tel: +43-1-50213-6676
Email: simon.kuchelbacher@rhi-ag.com

end of announcement                               euro adhoc 

issuer:      RHI AG
             Wienerbergstrasse 9
             A-1100 Wien
phone:       +43 (0)50213-6676
FAX:         +43 (0)50213-6130
mail:     rhi@rhi-ag.com
WWW:      http://www.rhi-ag.com
sector:      Refractories
ISIN:        AT0000676903
indexes:     ATX Prime, ATX
stockmarkets: official market: Wien 
language:   English

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