- Recovery trend continued in Q4-2020, provisional operating result of EUR 55.8 million exceeds previous year and last forecast

- Contribution to earnings in Q4-2020 at EUR 25.1 million

Salzbergen, Germany, March 10, 2021. According to preliminary calculations, H&R GmbH & Co. KGaA (abbrev.: H&R KGaA; DE000A2E4T77) achieved a better operating income (EBITDA - consolidated income before tax, other financial income and expenses and depreciation/amortization, impairment and appreciation of fixed assets and property, plant and equipment) of EUR 55.8 million in the financial year 2020 than in the same period of the previous year (2019: EUR 52.9 million). At the same time, it exceeded the range of the expectations of up to EUR 53.0 million last refined in December 2020. Though coming from an increased EBITDA, the higher depreciation of EUR -56.1 million (2019: -45.5 million), thereof EUR 5.1 million on goodwill, had a particularly strong impact on the other earnings levels: EBIT amounted to EUR -0.3 million (2019: EUR 7.4 million), earnings before taxes (EBT) to EUR -10.4 million (2019: EUR -1.2 million). All in all, the net result attributable to shareholders amounted to EUR -9.0 million (2019: EUR -1.4 million). This figure was achieved with sales of EUR 873.0 million. This was around 18.8 % less than in the previous year (2019: EUR 1,075.3 million).

A robust year for H&R - despite a global pandemic and market volatilities

An economically influencing factor of overriding importance in the past financial year was certainly the COVID-19 pandemic with its subsequent effects. Above all, the efforts to contain the infection process led to an enormous direct burden on national economies and social structures. The resulting closures of important key industries and the slowdown in global growth markets, especially in the first half of the year, had a significant impact on the general economic and market developments. They also shaped our business and earnings development, which only brightened significantly in the second half of the year and found a breakthrough in the final quarter: Q4/2020 contributed a preliminary operating income of EUR 25.1 million to the full-year EBITDA (Q4/2019: EUR 8.0 million). The other earnings levels also presented stronger figures at the end of the year: EBIT in the fourth quarter amounted to EUR 6.5 million (Q4/2019: EUR -4.0 million). Earnings before taxes (EBT; Q4/2020: EUR 2.3 million; Q4/2019: EUR -6.8 million) and the net result attributable to shareholders (Q4/2020: EUR 5.8 million; Q4/2019: EUR -5.4 Mio.) also increased sharply. On a quarterly perspective, the company generated sales of EUR 223.1 million (Q4/2019: EUR 250.6 million), 11.0 % lower than in the same period of the previous year.

Operating and free cash flow positive again in 2020

Over the year as a whole, the operating cash flow - based on a lower consolidated income and higher depreciation - decreased from EUR 95.9 million in the previous year to EUR 60.1 million. However, lower cash outflows for investments relieved the free cash flow, which rose from EUR 20.8 million to EUR 22.0 million.

The development for Q4/2020 was similar: Here, the operating cash flow in the fourth quarter of 2020 fell from EUR 24.7 million in the previous year to EUR 15.6 million. At the same time, the free cash flow also recovered significantly to EUR 7.7 million (Q4/2019: EUR -3.8 million).

The balance sheet total at the end of the 2020 financial year was EUR 745.7 million (December 31, 2019: EUR 838.6 million). Equity as of the balance sheet date was EUR 346.9 million (December 31, 2019: EUR 363.4 million). Equity is quoted at 46.5% (December 31, 2019: 43.3%).

For a complete presentation of the business development including segment reporting and the annual financial statements, H&R KGaA refers to the publication of the 2020 annual report in April 2021.

Contact:
H&R GmbH & Co. KGaA, Head of Investor Relations / Communication, Ties Kaiser
Neuenkirchener Straße 8, 48499 Salzbergen
Phone.: +49 40 43218-321, Fax: +49 40 43218-390
Mail: ties.kaiser@hur.com
www.hur.com

H&R GmbH & Co. KGaA:
H&R KGaA is a specialty-chemicals company listed on the Frankfurt Stock Exchange's Prime Standard segment. It develops and manufactures crude-oil-based chemical and pharmaceutical specialty products and produces high-precision plastic parts.

Forward-looking statements and forecasts:
This insider information pursuant to Article 17 of the Market Abuse Regulation [MAR] contains forward-looking statements. The statements are based on the current estimates and forecasts by the Management Team and the information available to it at this time. These forward-looking statements do not provide any warranty for the future developments and results contained therein. The future developments and results are dependent on a number of factors; they entail various risks and contingencies and are based on assumptions which could prove to be incorrect. We do not assume any responsibility for updating the forward-looking statements contained in this insider information pursuant to Article 17 of the MAR.