Semperit AG Holding: Record Revenues and Best Result in the Company's History in 2013

Vienna, (PresseBox) - .
- Revenue increase of 9.4% to EUR 906.3 million despite the weak economy
- Significant rise in EBITDA (+21.9%) and EBIT (+21.1%)
- Growth and enhanced profitability in both sectors
- Dividend proposal of EUR 0.90 per share (basic dividend, 2012: EUR 0.80) plus EUR 0.30 anniversary bonus
- Satisfactory development expected in 2014

The publicly listed Semperit Group recorded the best result in the company's history, generating record revenue of EUR 906.3 million in 2013, up from EUR 828.6 million in 2012. In the Medical Sector, the successful integration of the glove producer Latexx Partners (acquired in 2012) as well as intensified sales activities served as the basis for double-digit revenue and earnings growth. Semperit achieved market share gains in the Industrial Sector and substantial increases in revenue and profitability against the backdrop of a weak market environment.

The Group's consolidated EBITDA increased by 21.9%, from EUR 108.7 million in 2012 to EUR 132.5 million. Despite the growth investments related increase in depreciation, EBIT rose by 21.1% to EUR 87.8 million, up from the prior-year level of EUR 72.5 million. In addition to the strong operating performance of the company, the strategic raw material management and cost discipline played a significant role in raising earnings. Profitability improved accordingly. The EBITDA margin climbed from 13.1% to 14.6% year-on-year, whereas the EBIT margin climbed to 9.7% from 8.8% in the previous year. Semperit achieved a net result (earnings after tax) of EUR 54.9 million, constituting an increase of 18.8% from the comparable level of EUR 46.2 million in 2012. The Management Board will propose the distribution of an increased basic dividend of EUR 0.90 per share (2012: EUR 0.80) to the Annual General Meeting along with a one-time anniversary bonus of EUR 0.30 per share to commemorate the company's 190th year of operation.

"In the face of a challenging business environment, Semperit developed outstandingly in 2013, generating the best result in the company's history. We pushed ahead with our strategic growth projects in all segments and optimally managed our raw material demand", says Semperit CEO Thomas Fahnemann in assessing the Group's performance in 2013. "In the Sempermed segment, the successful integration of Latexx Partners and our investments in sales and marketing particularly paid off in 2013. The consequences were double-digit volume growth in the medical glove business and new large international customers for our industrial gloves. In the Industrial Sector we also expanded faster than the market in Europe and the USA, opening up new regions and markets thanks to new products and our sales drive. Our production capacities are well utilised. For this reason, we will invest up to EUR 60 million in 2014 to expand our production facilities and secure long-term growth", CEO Fahnemann adds.

Semperit continues to boast a sound capital basis as reflected by its equity ratio of 48.3% at the reporting date (December 31, 2012: 49.3%). Cash and cash equivalents rose from EUR 133.3 million to EUR 182.6 million as a result of the strong operating cash flow generation and the cash inflows from the Corporate Schuldschein loan. "Semperit also features an outstanding level of financial stability in addition to its excellent cash position. We have a positive net liquidity of EUR 43.3 million after deducting all financial liabilities", explains Semperit CFO Johannes Schmidt-Schultes. "The continuation of our growth path is secured. On the basis of our earnings and financial position, we will propose a dividend increase to the Annual General Meeting compared to the previous year", CFO Schmidt-Schultes adds.

Medical Sector: Substantial revenue and earnings increases

In the Medical Sector (the Sempermed segment), the integration of Latexx Partners, an improved coordination of the company's sales efforts and disciplined cost management resulted in a substantial rise in revenue and earnings. Moreover, the intensified sales activities led to significantly higher sales volumes. 31% more examination gloves were sold in 2013 than in 2012. The ongoing negative price effects caused by the lower raw material prices compared to 2012 were more than offset. Capacity utilisation at the Sempermed production plants was very good (above 80%) during the reporting period.

Revenue of the Medical Sector rose 13.4% in 2013 to EUR 434.9 million in 2013. EBITDA was up 41.2% to EUR 58.7 million, providing an improved EBITDA margin of 13.5% compared to 10.8% in the prior year.

Industrial Sector: Growth and high profitability despite the weak economic conditions

The Industrial Sector (the Semperflex, Sempertrans and Semperform segments) showed a strong business development in spite of the challenging macroeconomic environment. New markets were opened up and market shares gained thanks to new products and the expansion of sales activities.

The development of the Semperflex segment was characterised by sales successes in Europe and the USA, efficient raw material procurement and anticipating production planning. Semperflex increased its market share for both hydraulic and industrial hoses. As a result, the production plants operated at almost full capacity. The Sempertrans segment generated a significant increase in earnings, primarily driven by the strategic focus on more profitable product groups and the enhanced internationalisation. Considerable volume growth led to full capacity utilisation of its European production plants. The Semperform segment also generated double-digit sales growth as well as substantial revenue and earnings increases. All key business units contributed to this development with higher sales volumes, which more than compensated for the negative price effects.

Revenue of the Industrial Sector was up 5.9% in 2013 to EUR 471.5 million. EBITDA of the Industrial Sector increased by 12.4% to EUR 90.1 million, resulting in an excellent EBITDA margin of 19.1%, up from 18.0% in the previous year. Moreover, significant double-digit EBIT margins were generated in all segments.

Outlook 2014 and multi-year targets

The Semperit Group expects a continuation of the current good level of incoming orders and a satisfactory development of revenue and earnings in 2014. However, no significant growth impetus is anticipated.

The focus of the Sempermed segment will be on further enhancing the efficiency of the individual production plants and the overall profitability of the segment. The Semperit Group assumes that demand for examination and protective gloves will continue to rise.

A stable development is expected in the Industrial Sector in 2014. Due to the fact that production capacities are already being fully utilised in the Semperflex and Sempertrans segments, Semperit decided in 2013 to expand its capacities for hydraulic and industrial hoses in Odry, Czech Republic and conveyor belts at the Bełchatów site in Poland. The additional production capacities will be available in the first half of 2015.

Semperit plans to invest about EUR 50-60 million in boosting production capacities. Thereof EUR 25 million will be invested in the maintenance of its existing facilities.

The Group reaffirms its previous growth target of generating double-digit revenue growth on average in the years from 2010 to 2015 inclusive. The Semperit Group still aims to achieve an EBITDA margin of between 12% and 15% and an EBIT margin of between 8% and 11% in the coming years.

The annual financial report for the year 2013 is available for download at http://www.semperitgroup.com/en/ir/publications/annual-reports/.

Semperit AG Holding

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 and plastic 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, and the global R & D centre is in Wimpassing, Lower Austria. The Semperit Group employs about 10,300 people worldwide, including more than 7,000 in Asia and more than 700 in Austria (Vienna and production site in Wimpassing, Lower Austria). The Group has 22 manufacturing facilities worldwide and numerous sales offices in Europe, Asia, and America.

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