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Semperit AG Holding

EANS-News: Semperit AG Holding
Revenue increase in the first nine months of 2017, operating earnings situation remains weak

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Quarterly Report

Vienna, Austria -

* Revenue in Q1-3 2017 increased by 3.5% year-on-year to EUR 670.0 million
* Earnings in Q1-3 2017 slightly below previous year: positive one-off effects
  from joint venture transaction were up against various negative one-off
  effects
* Measures taken in Q3 - highlights:
  - Expansion step at Semperflex in Czech Republic
  - Social plan signed for Sempertrans production site in France
  - Start of analysis and strategy process
* Outlook remains suspended


The publicly listed Semperit Group continued to achieve a revenue increase in
the first nine months of 2017, earnings are slightly below the previous year's
number. In the third quarter 2017 the revenue figure stays nearly at its current
level, EBIT was negative in Q3 because of one-off effects. However, the new
Management Board has introduced further measures to achieve a sustainably
efficient cost structure and therefore profitable growth due to the weak
earnings situation. In the Sempermed segment, the severe cost-cutting programme
led to productivity increases despite temporary interruptions of the production
process. At the same time, further restructuring expenses amounting to EUR 4.8
million were recorded in the Sempermed segment in France (in addition to EUR 6.8
million in Q2 2017) in Q3 2017 as well as expenses of EUR 5.1 million relating
to the tax audit in Austria.

"The reported loss in the third quarter largely results from one-off effects,
however these results are by no means satisfying." says the Chairman of the
Management Board, Martin Füllenbach, and names the tasks that will be the focus
in the coming quarters: "A competitive cost structure, an increased level of
cost awareness in the entire company and at the same time the realignment of the
future portfolio. This may certainly be considered a challenging contrast."
Füllenbach lists the shutdown of the Sempertrans factory in France and the
introduction of the World Class Manufacturing Model as already well-advanced
measures. "We will consistently pursue this path," says the CEO.

In the first nine months of 2017, Semperit achieved a revenue increase of 3.5%
to EUR 670.0 million in a year-on-year comparison, which is primarily based on
an increase in sales volumes in all segments except Sempertrans. Reported EBITDA
totalled EUR 97.8 million, which corresponds to an increase of 35.4% year-on-
year. Reported EBIT showed a 1.1% decrease to EUR 46.1 million. This is
basically due to one-off effects such as a impairmant of EUR 26.0 million in the
Sempermed segment (in Q2 2017), expenses for restructuring the Sempertrans
production site in France totalling EUR 11.6 million, a value adjustment of EUR
4.0 million for already capitalised IT costs which cannot be utilised in the
future (in Q2 2017), as well as the expenses of EUR 5.1 million recorded in Q3
2017 relating to the tax audit in Austria (particularly the denial of the refund
for the energy tax). The resulting cash flow decreased by 26.5% to EUR 32.7
million while the earnings per share fell by 79.0% to EUR 0.24.

Operational EBIT without the positive one-off effect from the joint venture
transaction (EUR 84.8 million in Q1 2017) and the negative effect of the
impairment, the restructuring expenses as well as the IT value adjustment and
the expenses from the tax audit was EUR 7.9 million - a significant decrease by
81.2% compared with the previous year. Semperflex and Semperform achieved
positive EBIT contributions again. Operational earnings at Sempermed improved
slightly but remained negative, while Sempertrans continued to be negatively
impacted by margin pressure in Q3 2017. The adjusted earnings per share were
minus EUR 0.66 (Q1-3 2016: EUR 0.95).

The Semperit Group utilised the cash inflow from the joint venture transaction
in March 2017 to significantly reduce the debt burden and to finance the
approved investment programme (CAPEX). Net debt declined from EUR 230.6 million
at the end of 2016 to EUR 149.6 million as of 30 September 2017, which results
in a low net debt/EBITDA ratio of 1.45x (end of 2016: 2.96x).

The equity ratio remained solid at 34.9% (end of 2016: 31.8%). Cash and cash
equivalents were EUR 176.3 million (end of 2016: EUR 190.2 million) after the
cash inflow from the joint venture transaction.

INDUSTRIAL SECTOR
Development of the segments in the Industrial Sector (Semperflex, Sempertrans
and Semperform) was subject to different dynamics. However, sales figures
increased in all segments except Sempertrans. Revenue increased by 5.3% to EUR
409.8 million. Profitability was significantly impaired due to unfavourable
developments in raw material prices as well as passing price changes on to
customers with a delay. Year-on-year, EBITDA fell by 56.8% to EUR 31.0 million
while EBIT decreased by 71.1% to EUR 16.5 million. EBIT was particularly
burdened by expenses for restructuring Sempertrans in France amounting to EUR
11.6 million as well as expenses of EUR 3.0 million - recognised on a pro rata
basis in the Industrial Sector - relating to the tax audit for Austria in the
third quarter.

MEDICAL SECTOR
The development of the Medical Sector (Sempermed segment) continued to be
characterised by a competitive market environment with price pressure. Against
this background, revenue increased by 0.7% to EUR 260.2 million primarily due to
price increases. Expansion and optimisation of capacities in the Malaysia
factory are well under way despite temporary interruptions of the production
process, while at the same time cost-cutting measures were taken in production,
marketing and sales. Comparing the end of September 2017 with the end of
September 2016, the number of employees at segment level dropped significantly
by slightly more than 400 persons (-13.0%).

Reported EBITDA and EBIT increased to EUR 79.4 million and EUR 44.7 million
respectively in Q1-Q3 2017. Without consideration of the positive contribution
from the joint venture transaction in Q1 2017, the impairment in Q2 2017 and
expenses of EUR 2.0 million (recognised on a pro rata basis in the Medical
Sector) relating to the tax audit in Austria, operational EBITDA decreased to
EUR 3.3 million (Q1-Q3 2016: EUR 5.2 million) and operational EBIT to minus EUR
5.4 million (Q1-Q3 2016: EUR -5.5 million).

RESULTS OF THE THIRD QUARTER
The Semperit Group recorded revenue of EUR 208.4 million in the third quarter of
2017 - it remained almost unchanged compared to the prior-year quarter. All
segments in the Industrial Sector (+7.6%) increased their revenues while there
was a decrease (-11.0%) in the Medical Sector (Sempermed).

Other operating expenses increased significantly due to accruing restructuring
expenses for the Sempertrans production site in Argenteuil, France, and the
expenses recorded relating to the tax audit in Austria (particularly energy tax
rebate) among other things.

Therefore, EBITDA decreased significantly to EUR 0.5 million. EBIT for the third
quarter of 2017 amounted to minus EUR 8.2 million. Adjusted for the negative
one-off effects, EBIT totals EUR 1.7 million. Earnings after tax amounted to
minus EUR 16.4 million, while earnings per share were minus EUR 0.79. The
adjusted earnings after tax were minus EUR 5.6 million

OUTLOOK 2017
The adjusted EBIT (without positive and negative one-off effects) for the 2017
financial year will therefore be significantly below the adjusted EBIT of 2016
(EUR 41 million after deduction of the earnings contribution from the Thai SSC/
Siam Sempermed Corporation Ltd. at that time).

Continuous and potentially new measures to increase profitability and to
strengthen the balance sheet structure remain right at the top of the Management
Board's agenda. Further significant one-off charges in addition to the measures
already taken and still being analysed can therefore not be excluded in the
coming quarters. Due to the above-mentioned developments, the outlook remains
suspended for the coming quarters.

Semperit continues to focus on organic growth. Investments in the expansion of
capacities will be continued. Total capital expenditures (CAPEX) of around EUR
80 million (2016: EUR 65 million) have been planned for 2017.

About Semperit
The publicly listed company Semperit AG Holding is an internationally-oriented
group that develops, produces, and sells in more than 100 countries highly
specialised rubber products for the medical and industrial sectors: examination
and surgical gloves, hydraulic and industrial hoses, conveyor belts, escalator
handrails, construction profiles, cable car rings, and products for railway
superstructures. The headquarters of this long-standing Austrian company, which
was founded in 1824, are located in Vienna. The Semperit Group employs around
6,500 people worldwide, including about 3,500 in Asia and more than 800 in
Austria (Vienna and production site in Wimpassing, Lower Austria). The Group has
22 manufacturing facilities worldwide and numerous sales offices in Europe,
Asia, Australia and America. In 2016 the group generated revenue of EUR 852
million and an EBITDA of EUR 78 Million.




Further inquiry note:
Monika Riedel
Group Head of Communications & Sustainability
+43 676 8715 8620 
monika.riedel@semperitgroup.com	

Stefan Marin
Head of Investor Relations
Tel.: +43 676 8715 8210 
stefan.marin@semperitgroup.com

www.semperitgroup.com

end of announcement                         euro adhoc
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issuer:       Semperit AG Holding
              Modecenterstrasse 22
              A-1030 Wien
phone:        +43 1 79 777-210
FAX:          +43 1 79 777-602
mail:          stefan.marin@semperitgroup.com
WWW:       www.semperitgroup.com
ISIN:         AT0000785555
indexes:      ATX PRIME, WBI, ATX GP
stockmarkets: Wien
language:     English

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