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Vienna, Austria –
- Restructuring and transformation phase until 2020
- Negative earnings after taxes expected for 2017
- Expected pass of dividend for 2017
- Portfolio decisions and further modifications in the production footprint possible throughout 2018
Based on the results of the ongoing analysis and transformation process which have been obtained so far as well as discussion of the outcome with the Supervisory Board, the Management Board of Semperit AG Holding emphatically introduces a phase of sustainable restructuring. The necessity of this decision is underlined by the fact that from today’s point of view a single-digit negative EBIT will be reported for the last quarter of 2017. In addition to the current optimisation measures in the Sempermed segment, Semperit now starts further implementation steps for Sempertrans and Semperform. In the Semperflex segment and in Mixing, the focus will be on accelerating the profitable implementation of the still necessary investment projects and of the related organic growth course.
Due to the expected negative earnings after tax in 2017 and the ongoing restructuring and transformation phase, the Management Board will from today’s perspective not be able to propose a dividend (0.70 EUR per share in previous year).
The focus in the restructuring phase will be particularly on the following measures:
- Optimisation of operational production and acquisition processes
- Improvement of pricing and price setting processes
- Review and, if necessary, adaptation of the current production footprint
- Stabilisation and sustainable improvement of operational earnings
“Since the start of the analysis and transformation process in autumn 2017 we have identified significant potentials for an increase in earnings and will initiate appropriate implementation measures from now on,” says Martin Füllenbach, Chairman of the Management Board of Semperit AG Holding. “With substantial restructuring and complexity reduction we aim to find new strength and profitability by 2020. In addition, as soon as a successful outcome of the restructuring process materializes, the Management Board will also have to deal with growth opportunities around the core technology as well as the market expertise, which has grown over more than 195 years.”
Throughout 2018, the Management Board will decide step by step whether there will be modifications in the portfolio of existing segments as well as further adaptations in the production footprint after the shut-down of the loss-making Sempertrans plant in France in 2017. The termination of the transformation of the Semperit Group is scheduled for the end of 2020. From this point of time, the Semperit Group aims to achieve an EBITDA margin of approximately 10% as a key controlling figure.
The Management Board also expects continuous one-off effects and restructuring costs in the upcoming quarters that might cause additional volatility in results. For the financial year 2018, increased consulting costs for the support of the implementation are expected assumed. Therefore, the year 2018 will be considered as a year of transition.
Because of the hybrid capital line agreed in December 2017, financing of the necessary investments as well as of the restructuring and transformation phase will be secured, emphasising the long-term commitment of the core shareholder.
end of announcement euro adhoc
issuer: Semperit AG Holding
phone: +43 1 79 777-210
FAX: +43 1 79 777-602
indexes: ATX PRIME, ATX GP, WBI
Digital press kit: http://www.ots.at/pressemappe/2918/aom
Rückfragen & Kontakt:
Director Group Communications & Sustainability
+43 676 8715 8620
Head of Investor Relations
Tel.: +43 676 8715 8210
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