ElringKlinger sees substantial growth in revenue and slight improvement in earnings based on preliminary figures for 2017 - Sale of Hug completed

ElringKlinger sees substantial growth in revenue and slight improvement in earnings based on preliminary figures for 2017 - Sale of Hug completed

- Revenue up by 6.8% to EUR 1,664 million, organically by 8.1%

- EBIT before purchase price allocation slightly up on previous year at EUR 141.8 million

- Q4 2017: revenue increases by 3.0% to EUR 419.3 million, organically by 6.7%; EBIT before purchase price allocation stands at EUR 30.7 million, EBIT margin at 7.3%

- Sale of Hug formally completed as of March 1, 2018; income from deconsolidation within low double-digit million euro range

- Outlook for current financial year on March 27, 2018

Dettingen/Erms (Germany), March 1, 2018 +++ Based on preliminary, unaudited figures, the ElringKlinger Group grew significantly in the financial year just ended. Revenue totaled EUR 1,664.0 (1,557.4) million, up 6.8% year on year. Taking into account the effects of currencies and acquisitions, organic growth was as high as EUR 126.0 million or 8.1%. Changes in the scope of consolidation - primarily, hofer powertrain products GmbH, Nürtingen, Germany, a company in which ElringKlinger AG holds a 53% stake and that has been fully consolidated within the Group since February 6, 2017 - contributed EUR 9.3 million or 0.6% to growth in the financial year just ended. Currency translation diluted revenue generated by the Group by EUR 28.7 million in total, equivalent to -1.8%.

At EUR 141.8 (140.4) million, Group earnings before interest, taxes, and purchase price allocation were slightly above the figure posted a year ago. Progress made at the Swiss site was a planned, although additional expenses associated with the introduction of a local ERP system had a dilutive effect on earnings growth. Volumes requested by customers as part of their production scheduling remained high at the North American sites, while the cost of raw materials increased markedly. In combination, this exerted downward pressure on earnings. These factors are also expected to have an influencing effect in the course of the current financial year.

"Global demand for our products is very strong, as illustrated by significant organic growth in revenue by 8.1%," explains Dr. Stefan Wolf, Chief Executive Officer of ElringKlinger AG. "We have seen growth in all regions around the world." Group revenue increased by 5.1% (and by as much as 6.5% adjusted for currencies) in Europe, while Asia-Pacific recorded growth of 6.1% (9.5% adjusted for currencies) and the NAFTA region 10.7% (13.6% adjusted for currencies). The direction taken by exchange rates for the Chinese yuan, the Turkish lira, and the US dollar, in particular, had an adverse effect on revenue. "Currency effects are a natural consequence of ElringKlinger's global reach. The effects of foreign currency translation are reflected in revenue and - as was the case in the first nine months - are also expected to be noticeable in our net finance result for the 2017 financial year as a whole," adds Chief Financial Officer Thomas Jessulat.

Turning to other matters, the transaction covering the sale of Swiss subsidiary Hug Engineering AG was closed effective from March 1, 2018. ElringKlinger had already reached an agreement on December 21, 2017, for the sale of this company to a major French automotive supplier. Following this divestment, the Group can now focus on lightweighting and e-mobility, which encompass the three pillars of battery technology, fuel cell technology, and electric drive systems as promising fields for the future. The continuation of business would have necessitated significant investment to support the global advancement of the Exhaust Gas Purification division. As Dr. Wolf explains: "We were able to negotiate a favorable agreement for ElringKlinger. The positive effect on earnings in fiscal 2018 is expected to be in the low double-digit million euro range."

ElringKlinger will publish its full and definitive results for the 2017 financial year on March 27, 2018, together with its outlook for 2018.

EUR million	Q4 2017	Q4 2016	 abs.	rel.	FY 2017	FY 2016	 abs.	 rel.
Revenue	419.3	407.2	+12.1	+3.0%	1,664.0	1,557.4	+106.6	+6.8%
of which FX effects			-16.9	-4.2%			-28.7	-1.8%
of which akquisitions			+2.0	+0.5%			+9.3	+0.6%
of which organic			+27.1	+6.7%			+126.0	+8.1%
EBITDA	55.9	64.5	-8.6	-13.3%	238.4	231.2	+7.2	+3.1%
EBIT before purchase price allocation	30.7	39.5	-8.8	-22.3%	141.8	140.4	+1.4	+1.0%
EBIT margin before purchase price allocation (in %)	7.3%	9.7%	-2.4pp		8.5%	9.0%	-0.5pp
Purchase price allocation	1.0	1.1	-0.1		4.5	4.8	-0.3
EBIT	29.7	38.4	-8.7	-22.7%	137.3	135.6	+1.7	+1.3%

 

For further information, please contact:
ElringKlinger AG
Dr. Jens Winter | Investor Relations/Corporate PR
Max-Eyth-Straße 2 | D-72581 Dettingen/Erms
Phone: +49 7123 724-88335 | Fax: +49 7123 724-85 8335
E-Mail: jens.winter[at]elringklinger.com

About ElringKlinger AG
As an automotive supplier, ElringKlinger has become a trusted partner to vehicle manufacturers - with a firm commitment to shaping the future of mobility. Be it optimized combustion engines, high-performance hybrids, or environmentally-friendly battery and fuel cell technology, ElringKlinger provides innovative solutions for all types of drive systems. ElringKlinger's lightweighting concepts help to reduce the overall weight of vehicles. As a result, vehicles powered by combustion engines consume less fuel and emit less CO₂, while those equipped with alternative propulsion systems benefit from an extended range. In response to increasingly complex combustion engine technology, the Group also continues to make refinements with regard to gaskets in order to meet the highest possible standards. Additional solutions include thermal and acoustic shielding components as well as particulate filters and end-to-end exhaust gas purification systems for engines used in stationary and mobile applications. The Group's portfolio is complemented by products made of the high-performance plastic PTFE which are also marketed to industries beyond the automotive sector. These efforts are supported by a dedicated workforce of more than 9,300 people at 49 ElringKlinger Group locations around the globe.

Disclaimer
This release contains forward-looking statements. These statements are based on expectations, market evaluations and forecasts by the Management Board and on information currently available to them. In particular, the forward-looking statements shall not be interpreted as a guarantee that the future events and results to which they refer will actually materialize. Whilst the Management Board is confident that the statements as well as the opinions and expectations on which they are based are realistic, the aforementioned statements rely on assumptions that may conceivably prove to be incorrect. Future results and circumstances depend on a multitude of factors, risks and imponderables that can alter the expectations and judgments that have been expressed. These factors include, for example, changes to the general economic and business situation, variations of exchange rates and interest rates, poor acceptance of new products and services, and changes to business strategy.