08.08.2016: 1st Half of 2016 133 KB Download

Pankl Racing Systems AG - First Half of 2016

Kapfenberg, 8th August 2016

• H1 revenues increased by 8% to €95.4m

• EBIT increased by 20% to €8.0m

• Significant improvements in revenues and earnings in the racing business

• Ongoing adverse market environment for civil helicopters

in €k	H1 2016	H1 2015	CHG	Q2 2016	Q2 2015	CHG
Revenues	95,385	88,299	8%	46,556	41,580	12%
EBITDA	14,543	13,334	9%	6,369	5,160	23%
EBIT	8,002	6,653	20%	3,062	1,814	69%
Earnings after taxes	5,489	4,533	21%	1,870	556	236%
EBITDA margin	15%	15%	-	14%	12%	-
EBIT margin	8%	8%	-	7%	4%	-

In the first half of the fiscal year 2016, Pankl Group achieved an 8.0% growth in revenues from €88.3m to a record €95.4m. In particular in Q2 the group achieved very satisfactory improvements in revenues and earnings compared to the same period last year.

The racing business of the Racing/High Performance Segment grew strongly and also the high performance business continued to grow. The market environment in the Aerospace Segment continued to be very difficult.

The Group achieved a significant improvement in operating earnings (EBIT). In the first half of the fiscal year 2016, EBIT increased by 20.3% to €8.0m or 8.4% of revenues (2015H1: €6.7m or 7.5% of revenues). The net financial results amounted to €-1.6m versus €-0.9m in the same period last year. This deterioration was due to the fact that the foreign exchange rate development primarily of the USD versus the EUR was favourable in 2015H1 but caused losses in 2016H1. In 2016H1, income taxes were lower than in the same period last year, so that earnings after tax amounted to €5.5m (2015H1: €4.5m). Net earnings attributable to Pankl shareholders amounted to €5.6m or €1.77 per share versus €4.3m or €1.36 per share in the same period last year.

The development of the cash flow is very delightful. In H1 2016 we were able to implement appropriate measures to reduce working capital. Cash flow from operating activities amounted by 75% to € 14.3m versus € 8.2m in H1 2015. In H1 2016, capital expenditure hence increased only to € 7.4m (H1 2015: € 6.9m) - Free cash flow increased to € 6.8m (H1 2015: € 1.3m).

Racing/High Performance Segment

In 2016H1, revenues increased by 10% to €83.9m (2015H1: €76.2m). We experienced a very favourable development in the motor racing business served by our Austrian and UK manufacturing facilities, which feature good margins. Also the high performance business, which is particularly served by our Slovak production facility, continued to grow, albeit at a lower rate than at the beginning of the year. In 2016H1, operating earnings (EBIT) increased by €2.2m from €5.2m or 6.8% of revenues to €7.4m or 8.8% of revenues.

Aerospace Segment

Demand for civil helicopters continues to be very weak. As a result our revenues in 2016H1 declined by 3% to €11.8m (2015H1: €12.1m). Operating earnings amounted to €0.4m or 3.1% of revenues versus €0.5m or 3.9% of revenues in the same period last year.

Outlook

CEO Wolfgang Plasser: "We are satisfied with our revenues and earnings in 2016H1. By and large, our business developed as we expected. In the coming months we anticipate increasing volatility in the high performance business and an ongoing adverse market environment in the civil helicopter business. Nevertheless, financial results should continue to remain solid.

In 2016H2, there will be intense preparation measures for two events which will be of major importance for the Pankl Group in the coming years. The first will be the start of production of our new Kapfenberg high performance drivetrain production facility and the second will be the new 2017 Formula 1 rules.

The 2015H1 financial report is available as of now under the link:

http://www.pankl.com/en/header-navigation/investor-relations/publications/financial-statements/

Further information:

Investor Relations

Phone: [phone]

e-mail: [e-mail] Website: www.pankl.com