BOEWE SYSTEC : Lübeck-based Possehl Group achieves record Financial Year 2016

Augsburg, February 15, 2017 Preliminary figures

Lübeck-based Possehl Group achieves record Financial Year 2016

• Group sales increased by 10% to 3.9 billion euros

• Earnings before taxes (EBT) grew significantly to 242 million euros

• Leap in earnings is based on increased operating results and non-recurring deconsolidation gains

• Capital ratio and financial position improved yet further

The 2016 financial year was the most successful year in Possehl's 169- year history. The Lübeck-based conglomerate was able to achieve record results both in terms of sales and earnings and once again succeeded in surpassing the very good figures of the previous year.

According to preliminary figures that have yet to be conclusively audited, consolidated sales increased by around 10% to 3.9 billion euros. As a result of risen prices for precious metal, the precious metal recycling business contributed significantly to the increase in sales volume. Apart from this positive price effect, Group sales compared to the previous year remained stable in a rather subdued global economic environment with numerous economic imponderables.

The Group earnings before taxes (EBT) rose by more than 50% to a record high of 242 million euros. This significant profit increase is a result of both improved operating results in the business units and non- recurring deconsolidation proceeds, in particular from the sale of the smart card business serving the chip card industry. The EBIT margin

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Alexandra Stoelzle Corporate Marketing

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[e-mail] BÖWE SYSTEC GmbH

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(earnings before interest and taxes) of around 7%, adjusted for both the proceeds from precious metal sales and non-recurring earnings, was on a par with the previous year.

Uwe Lüders, CEO at Possehl, is very pleased with the financial year 2016: "We reached new highs in terms of sales and earnings. All our employees worked hard for this result and I am very proud of what we achieved together. Our eight different business units are all financially stable and continued their positive development last year. Our financial success provides the latitude required to continue to invest in our future by expanding existing business segments or acquiring new companies."

As in the previous year, all operating business units were profitable in the financial year 2016. In particular the construction business segment, in which Possehl invested heavily in the past years, recorded a positive development and is now a supporting pillar within the Possehl Group with annual sales of around 320 million euros. The other Group segments also reported good and stable business performances. This applies especially to the cleaning machine business (Hako) and elastometer plants for the tyre industry (Harburg-Freudenberger). Despite slightly declining sales, both business segments were able to maintain or even increase the good results of the previous year. The decline in revenues in the electronics segment resulting from the disposal of the smart card business was largely offset by operational improvements.

The 2015 turnaround of the two Augsburg-based business segments printing machines (manroland web systems) and document management systems (BÖWE SYSTEC), which are particularly affected by structural changes, proved to be sustainable in the financial year 2016. Both companies were able to increase their profitability noticeably. Moreover, with the majority acqisition of the Dutch company Optimus Sorter, BÖWE SYSTEC invested in the promising logistics and eCommerce business.

Press Contact

Alexandra Stoelzle Corporate Marketing

Phone [phone]

Fax [phone]

[e-mail] BÖWE SYSTEC GmbH

Werner-von-Siemens-Str. 1

86159 Augsburg

Germany www.boewe-systec.com

The midmarket segment reported double-digit annual growth in the past years to generate sales of more than 300 million euros. Last year, mainly driven by the acquisition of ARBAprocessing, sales increased by 20%.

The Group's financial key data improved again along with the Group's earning indicators. The equity ratio within the corporation rose to 54.3% and the available net liquidity (ANL) climbed to a record high of 352 million euros. "It is our aim to invest this very large amount of money carefully to safeguard Possehl's future. We will not let ourselves be induced by low or even negative deposit interest rates to act imprudently. In fact, we will continue on our path to sustainable and profitable growth in the future", states Uwe Lüders looking ahead.

Press Contact

Alexandra Stoelzle Corporate Marketing

Phone [phone]

Fax [phone]

[e-mail] BÖWE SYSTEC GmbH

Werner-von-Siemens-Str. 1

86159 Augsburg

Germany www.boewe-systec.com

BÖWE SYSTEC GmbH

Company profile

BÖWE SYSTEC, a mechanical engineering company headquartered in Augsburg/Germany, tops the list of European suppliers for high-speed inserting, card mailing and card logistics, reading technologies, mail and parcel sorting systems as well as innovative software. Today, it is one of the world's leading solution providers for modern print and mailroom centers. With about 20 subsidiaries throughout Europe, the USA and in Japan, plus local general agencies for over 50 additional countries around the globe, the mailroom specialist is able to cater for individual, local market requirements. Since 2010 BÖWE SYSTEC GmbH has been owned by the Possehl Group, which generated annual sales of around

€3.9 billion with a global workforce of approximately 12,000 in 2016. The sole shareholder of L. Possehl & Co. mbH is the charitable Possehl Foundation in the Hanseatic City of Lübeck. More information is available at www.boewe-systec.comandwww.possehl.de.

Press Contact

Alexandra Stoelzle Corporate Marketing

Phone [phone]

Fax [phone]

[e-mail] BÖWE SYSTEC GmbH

Werner-von-Siemens-Str. 1

86159 Augsburg

Germany www.boewe-systec.com

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