29.08.2017: 1st Half of 2017 129 KB Download

Pankl Racing Systems AG - First Half of 2017

Kapfenberg, 29th August 2017

• Record revenues of €100.3m in the first half of 2017

• Record operating earnings due to F1 rule change

• Expansion of new high performance drivetrain plant continues according to plan

• Development of energy / turbine business within the Aerospace Segment at full speed

in €k	H1 2017	H1 2016	VDG
Revenues	100.303	95.385	5%
EBITDA	15.774	14.543	8%
EBIT	9.105	8.002	14%
Earnings after taxes	5.084	5.489	-7%
EBITDA margin	16%	15%	-
EBIT margin	9%	8%	-

In the first half of the fiscal year 2017, Pankl Group was again able to grow revenues and achieved record sales of €100.3m. This corresponds to a 5.2% growth versus the same period in 2016 (2016H1: €95.4m). Both segments, Racing/High Performance and Aerospace, contributed to the growth.

Operating earnings (EBIT) developed very favourably and increased over proportionally. In 2017H1, EBIT amounted to €9.1m or 9.1% of revenues versus €8.0m or 8.4% of revenues in the same period last year. While net interest results improved slightly, there was a deterioration in the net financial results due to unfavourable foreign exchange movements. In 2017H1, net financial results deteriorated from

€-1.6m by €0.4m to €-2.0m. Deducting corporation tax expenses of €-2.0m, resulted in earnings after tax of €5.1m (2016H1: €5.5m). Net earnings attributable to Pankl shareholders amounted to €5.4m or €1.71 per share versus €5.6m or €1.77 per share in the same period last year.

Racing/High Performance Segment

In the first half of the fiscal year 2017, our racing business benefitted from motor racing rule changes which led to higher development expenses of the teams. The high performance business focussed primarily on the expansion of the new Kapfenberg transmission plant, which carried on according to plan. First prototypes were already manufactured. Start-up expenses burdened segment half-year results as expected. In 2017H1, Racing/High Performance Segment revenues grew by 4.9% to €88.1m (2016H1: €83.9m). Operating earnings (EBIT) increased from €7.4m or 8.8% of revenues to €8.7m or 9.9% of revenues.

Aerospace Segment

Helicopter demand remained subdued. We aim to develop the turbine shaft business as an additional pillar next to our traditional products, helicopter main and rear rotor shafts. Pankl's turbine shafts are used in jet engines and stationary turbines. In 2017H1, the Aerospace Segment was able to increase revenues versus the same period last year despite the adverse market environment. Revenues grew by 8.4% from €11.8m to €12.7m. Operating earnings (EBIT) increased from €0.4m or 3.1% of revenues to €0.6m or 5.0% of revenues.

Outlook

CEO Wolfgang Plasser: "In 2017H1, we were able to achieve record operating earnings which were above our expectations due to the very favourable F1 business. In 2017H2, we will mainly focus on start of serial production in our new Kapfenberg drivetrain plant, start of production of our new additive manufacturing capacities and the production of turbine shafts. Due to the seasonality of the motor racing business, we expect lower H2 earnings than in H1. For the whole year 2017, we expect very solid results despite non-recurring expenses."

The 2017H1 financial report is available as of now under the link: http://www.pankl.com/de/header-navigation/investor-relations/veroeffentlichungen/finanzberichte/

Further information:

Investor Relations

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