DGAP-News: Preliminary business figures of Ringmetall AG within the guidance

Preliminary business figures of Ringmetall AG within the guidance

- Group sales of EUR 110.5 million are in the upper half of the forecast range
- aEBITDA of EUR 12.5 million at the lower end of the forecast range
- Start of the year business promises positive development for full-year 2019

Munich, 7. March 2019 - Ringmetall AG (ISIN: DE0006001902), an internationally leading specialist supplier in the packaging industry, has completed the financial year 2018 within the guidance despite general adverse global economic and geopolitical tendencies. Based on preliminary figures, Group sales increased by 8.0 percent to EUR 110.5 million (2017: EUR 102.3 million), putting it in the upper half of the sales forecast of EUR 108.0 to 112.0 million. Adjusted earnings before interest, taxes, depreciation and amortization (aEBITDA) increased by 3.8 percent to EUR 12.5 million (EBITDA 2017: EUR 12.0 million) and thus reached the lower end of the earnings forecast of EUR 12.5 to 13.5 million.

The development of Group sales is significantly influenced by the development of steel prices in individual markets. In addition, corporate acquisitions are a key component of the company's growth strategy. In the reporting period, these effects shaped the development of Group sales compared to the same period of the previous year as follows:

Industrial Packaging
- Effect of steel price development on segment sales: +3.4 percent
- Effect of corporate acquisitions on segment sales: +3.6 percent
- Effect of organic business development on segment sales: +3.2 percent

Industrial Handling
- Effect of organic business development on segment sales: -6.2 percent

As previously communicated, in 2018 a number of non-operating expenses had a negative impact on the Company's earnings and were therefore eliminated at Group level from the full year guidance on operating business performance in the form of an adjustment. These one-time special effects totaled EUR 2.0 million and were allocated to the following items:

- Group-wide conversion of the consolidated financial statements from German GAAP (HGB) to IFRS, the preparation of a securities prospectus, the change to the regulated market of the Frankfurt Stock Exchange (General Standard) and the related implementation of a rights issue capital increase
- Closure of the production site in Sessenhausen and relocation of the corresponding production parts to other site locations
- immediately recognized commission payment to an M&A advisor as part of the acquisition of Nittel Halle

The key preliminary business development figures for 2018 are as follows:

*Gross profit defined as: revenue including inventory changes less expenses for raw materials, consumables and supplies as well as purchased services

In the Industrial Packaging division, sales increased by 10.2 percent to EUR 97.3 million (2017: EUR 88.3 million). At EUR 11.3 million, the division's EBITDA was 6.7 percent down on the previous year (2017: EUR 12.1 million). In the Industrial Handling business unit, sales of EUR 13.2 million were only marginally lower than in the previous year after the successful realignment (2017: EUR 14.1 million). At EUR 1.2 million, EBITDA was at the previous year's level (2017: EUR 1.2 million). At the holding level, the aforementioned non-operating special effects, most of which were incurred at the holding company level, as well as general administrative expenses led to a reduction in Group EBITDA of EUR -2.0 million (2017: EUR -1.2 million).

In 2019, the Ringmetall Group plans to continue to grow through acquisitions of profitable companies in attractive markets. Currently, the company is involved in several advanced negotiation talks.

The Management Board of Ringmetall AG acknowledges the generally clouded sentiment in various sectors of business with due respect, even though there are currently only slight to no recessive tendencies in the operative business. For this reason, the outlook for the financial year 2019 will initially be within a wider range than usual and will be specified later in the year. Accordingly, the Executive Board expects Group sales to amount to EUR 120.0 million and EUR 130.0 million, as well as EBITDA of between EUR 12.0 million and EUR 14.0 million. This already includes a scenario based on a slight decline in steel prices. In addition, the sales and earnings contribution of Nittel Halle GmbH, which was consolidated for the first time on January 1, 2019, is included. Possible effects from planned company acquisitions are not part of the forecast.

Further details on the preliminary business figures for 2018 and the forecast for 2019 will be discussed by the Management Board today at 17:00 CET in a conference call for analysts, institutional investors and journalists. To register, please email Mrs. Anja Brabec (brabec@ringmetall.de).

The full annual report 2018 will be published as planned on 30.04.2019. Further information on the Ringmetall Group and its affiliated subsidiaries can be found at www.ringmetall.de.

Contact:
Ingo Middelmenne
Investor Relations
Ringmetall AG
Phone: +49 (0 )89 45 220 98 12
Mobile: +49 (0 )174 90 911 90
Email: middelmenne@ringmetall.de

About Ringmetall Group

Ringmetall is a leading international specialist in the packaging industry. The Industrial Packaging business offers high-security closure systems and inner liners for industrial drums for the chemical, petrochemical, pharmaceutical and food processing industries. The Industrial Handling business unit develops application-optimized vehicle components for the handling and transport of packaging units. In addition to the Group headquarters in Munich, Ringmetall has worldwide production sites and sales offices in Germany, Great Britain, Spain, Italy, Turkey, the Netherlands, China and the USA. Ringmetall generates more than EUR 100 million in sales worldwide.