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Semperit AG Holding

Quarterly Report May 15, 2012

760_rns_2012-05-15_545dbd38-2fe1-4df3-8ae7-685f4aa077e4.pdf

Quarterly Report

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SEMPERIT AG Holding Report on the 1st Quarter 2012

Highlights

  • • Revenue increase by 4.2% to EUR 201.8 million, third-strongest quarter in the company's history in terms of revenue
  • • Profit for the period up 3.3% to EUR 11.6 million
  • • Substantial profit growth for the Industrial sector; Medical sector strained by heavy competition and high energy costs
  • • EBITDA –3.7% to EUR 24.4 million, EBIT –8.3% to EUR 16.5 million
  • • Equity ratio still solid at 60.2%
  • • Net liquidity increased to EUR 110.8 million

Key figures

Semperit Group

1.1.–
31.3.2012
1.1.–
31.3.2011
Change 2011
Key performance figures
Revenue in EUR million 201.8 193.7 4.2% 820.0
EBITDA in EUR million 24.4 25.3 –3.7% 112.8
EBITDA margin in % 12.1 13.1 –1.0 PP 13.8
EBIT in EUR million 16.5 18.0 –8.3% 83.1
EBIT margin in % 8.2 9.3 –1.1 PP 10.1
Earnings after tax in EUR million 11.6 11.2 3.3% 54.1
Earnings per share (EPS) in EUR million 0.56 0.54 3.3% 2.63
Gross cash flow in EUR million 19.4 21.8 –10.9% 89.0
Return on equity 1) in % 11.9 12.6 –0.7 PP 14.5
Balance sheet key figures
Balance sheet total in EUR million 644.1 605.5 6.4% 616.6
Equity in EUR million 387.6 355.2 9.1% 372.5
Equity ratio in % 60.2 58.7 1.5 PP 60.4
Investments in tangible and intangible assets in EUR million 8.6 9.5 –9.9% 45.1
Employees (at balance sheet date) 7,947 7,364 7.9% 8,025
Segment key figures
Sempermed
Revenue in EUR million 88.0 86.2 2.0% 371.5
EBIT in EUR million 3.7 8.1 –54.2% 34.5
Semperflex
Revenue in EUR million 47.7 46.5 2.6% 186.9
EBIT in EUR million 8.2 7.5 9.9% 25.0
Sempertrans
Revenue in EUR million 38.9 34.4 13.2% 147.0
EBIT in EUR million 3.2 2.3 41.7% 11.3
Semperform
Revenue in EUR million 27.2 26.6 2.3% 114.6
EBIT in EUR million 3.2 2.6 24.1% 18.9

1) Based on full year projection

Note: Rounding differences in the totalling of rounded amounts and percentages may arise from the use of automatic data processing.

Business performance at Semperit Group

The first quarter of 2012 was marked by three major trends: an economic downturn in many of the Semperit Group's key markets, the continuously high level of raw materials prices and fluctuating demand among customers. In this environment Semperit's key objective was to counteract the intensified competition in the Medical sector as good as possible. In the Industrial sector, Semperit managed to take advantage of the normalisation of the order situation, which was a continuation of the trend seen in the second half of 2011, in order to optimise its order processing in terms of capacity and costs.

Difficult economic environment, high raw materials prices, volatile customer demand

Consolidated revenue in EUR million

In light of the upcoming capacity expansions in the Sempermed and Semperflex segments, priority was given to achieving volume growth in order to increase these segments' share of the market. The Sempertrans segment also sought to further improve the quality of its earnings following the turnaround in 2011.

As a result of these efforts, consolidated revenue was up in the first three months of 2012 by 4.2% year-on-year, from EUR 193.7 million to EUR 201.8 million. This enabled the Semperit Group to generate first-quarter revenue in excess of EUR 200 million for the first time, making the first quarter of 2012 the third strongest quarter in terms of revenues in the company's history. This positive development was the result of price adjustments, which became necessary due to the marked increase in raw materials prices compared to the prioryear period. The shift in the Sempertrans segment's portfolio away from textile conveyor belts towards increased production of metal conveyor belts also had a positive effect on prices. The Examination Gloves business unit of the Sempermed segment and the Hydraulic Hoses business unit of the Semperflex segment have primarily seen volume growth, while declines in volumes were posted in the other segments.

Planned capacity expansion at Sempermed and Semperflex

Price-driven increase in group revenue of 4.2% to EUR 201.8 million

Other operating income rose from EUR 5.4 million to EUR 10.4 million due to an increase in insurance reimbursements, foreign currency gains and subsidies.

After material costs had climbed markedly over the course of 2011, their impact on operating revenue in the first quarter of 2012 was restricted to 61.7% thanks to active raw materials management and the realisation of economies of scale (1st quarter 2011: 61.2%; full year 2011: 62.3%).

Restriction of material costs to 61.7% of operating revenue

Other operating expenses were up from EUR 29.1 million to EUR 33.5 million following an increase in foreign currency losses and customer return and commission costs.

As a consequence of the above mentioned facts, EBITDA (earnings before interest, taxes, depreciation and amortisation) fell by 3.7% from EUR 25.3 million to EUR 24.4 million, while EBIT (earnings before interest and tax) decreased by 8.3% from EUR 18.0 million to EUR 16.5 million. This development was mainly influenced by the decline in the Sempermed segment's contribution to the result, which was caused by intensified competition, belowaverage capacity utilisation at the start of the quarter under review and a rise in energy costs due to heavy rainfalls in Thailand. Additional costs also arose in connection with the startup phase at the new plant in Surat Thani, Thailand. From the current point of view, however, these costs are expected to decline considerably over the course of the year. All in all, earnings performance in the Industrial segments was positive.

The financial result improved from EUR –3.3 million to EUR –1.4 million year-on-year due to a reduction by half in the result attributable to redeemable non-controlling shares. This item principally relates to several companies within the Sempermed segment that made significantly lower contributions to the result in the first quarter of 2012 than in the same period last year. As a consequence, non-controlling shareholders saw a reduction in the profit attributable to them.

Decrease of 3.7% in EBITDA and of 8.3% in EBIT

Improved financial result due to lower share in profit of non-controlling interests

Total income tax charges remained at the prior year's level in the first quarter of 2012. The tax rate as a percentage of earnings before tax and redeemable non-controlling shares rose from 19.1% to 20.9% following a change in the regional composition of the result.

Earnings after tax were up by 3.3% from EUR 11.2 million to EUR 11.6 million, thanks for the most part to the improved financial result. This led to earnings per share of EUR 0.56 for the first three months of 2012, up from EUR 0.54 in the prior-year period.

The balance sheet total for Q1 2012 showed an increase of 4.5% from EUR 616.7 million to EUR 644.1 million. On the assets side, this was mainly attributable to the rise in both cash and cash equivalents and trade receivables, which was offset on the liabilities side by an increase in equity and trade payables.

As of the balance sheet date of March 31, 2012, the Semperit Group's equity capital stood at EUR 387.6 million, EUR 15.1 million higher than at the end of 2011 (EUR 372.5 million). The key factors in this development were the profit for Q1 2012 of EUR 11.6 million and the positive currency translation effects of EUR 3.5 million recognised in equity. The equity ratio as of March 31, 2012 was again above the average for the sector at an encouraging 60.2%. The Semperit Group's capital structure therefore remains very solid. Extrapolated for the full year, return on equity for the first quarter of 2012 came to 11.9% (first quarter 2011: 12.6%).

Cash and cash equivalents were up from EUR 97.9 million at the end of 2011 to EUR 116.8 million. Only part of the gross cash flow of EUR 19.4 million was used for investments in tangible and intangible assets. The liquidity situation also benefited from the active management of the trade working capital.

The trade working capital (inventories plus trade receivables minus trade payables) was reduced from EUR 213.1 million at the end of 2011 to EUR 209.4 million and therefore constituted 25.3% of the rolling twelve-month revenues of EUR 828.1 million.

Cash and cash equivalents were offset by liabilities to banks of EUR 6.0 million. On balance, therefore, the Semperit Group has maintained a very solid net liquidity of EUR 110.8 million.

Investments were down slightly year-on-year from EUR 9.5 million to EUR 8.6 million in the first quarter of 2012. Investment activities were focused on pushing ahead with the initial construction phase of the new glove factory in Thailand and on replacement and expansion investments at the Semperflex segment's locations in the Czech Republic, Thailand and China.

As of March 31, 2012, the total headcount came to 7,947 employees, 7.9% more than in the same period last year. This development was primarily due to the Sempermed segment's expansion of its capacities in Thailand.

EPS EUR 0.56, up from EUR 0.54 in the previous year

Solid equity ratio at 60.2%

Cash and cash equivalents increased EUR 18.9 million to EUR 116.8 million

Decrease in investments of 9.9% to EUR 8.6 million

Economic environment

The first quarter of 2012 saw a continuation of the economic downtrend that had begun in mid-2011. The World Bank recently warned that the negative economic forecast for the eurozone could exacerbate the growth slowdown in developing and emerging markets and vice versa, and consequently reduced the growth forecast for the global economy in 2012 to 2.5%.

There are likely to be considerable differences at a regional level however, with the BRIC states in particular expected to maintain their growth trajectory. Brazil's GDP is forecast to grow by 3.4%, and increases of 3.5%, 6.5% and 8.4% are predicted for Russia, India and China, respectively. The US has been reporting improved employment figures and a lower current account deficit since the fourth quarter of 2011, in light of which GDP is expected to grow by a robust 2.2% over the whole of 2012.

Following a weak end to the year 2011, the leading economic indicators in the eurozone improved in the first quarter of 2012, in particular the order situation in the Industrial sector and retail sales. However, this did not prevent the European Commission from sharply downgrading its forecast for 2012, which predicts a decline in economic output of 0.3%.

According to the Austrian National Bank's assessment of the Austrian economy, the slight contraction in GDP recorded in the final quarter of 2011 marked the lowest point in the economic cycle. Growth of 0.7% is forecast for 2012.

The market for medical products tends to evolve largely independent of the general economic situation, but the markets for construction, machine engineering and industrial equipment, which are more relevant for Semperit's Industrial sector, are much more subject to cyclical influences.

Differing trends in the commodity markets

On the commodity markets relevant to the rubber industry, the first three months of 2012 were characterised by differing trends in the individual sub-markets and persistently high levels of volatility. The supply shortages that had had such a major effect on procurement in 2011 were resolved, however.

After the prices of almost all raw materials of significance to the Semperit Group had either stabilised or fallen in the second half of 2011, the first quarter of 2012 saw slight price rises in a number of important sub-markets. Overall industry demand was modest due to the gloomy situation for the economy as a whole.

After exhibiting a downward trend for three consecutive quarters, natural rubber prices climbed sharply from the start of 2012, a trend which was largely attributable to the Thai government's announcement that it would intervene in the market. Recently, the start of the wintering season at the rubber tree plantations combined with sluggish demand has stabilised price trends. Towards the end of the first quarter of 2012, however, price levels were still around 10% above the low point reached at the end of 2011.

Further weakening of global economy

Above-average growth in BRIC nations

2012 GDP forecast for Austria: 0.7%

High volatility in raw material markets

Slight price increases in Q1 2012

Price for natural rubber starts to rise again

In the synthetic rubber market, the price correction that had begun after the highs of the third quarter of 2011 was of much shorter duration and was much weaker than expected, with the trend reversal setting in at the turn of the year. Prices have since risen by around 20%, and the market price is now again significantly higher than the average price for the year 2011.

Carbon black, an important filling material used in the rubber industry, was available in sufficient quantities in the first quarter of 2012 due to a decline in demand. Despite rising energy costs, price levels remained virtually stable. The market for wires and steel cord, which are processed in the Semperflex and Sempertrans segments, experienced a slight easing of the price situation.

Price for synthetic rubber already significantly up compared to the 2011 average

Stable price for carbon black

Performance of the segments

The Semperit Group is divided into two sectors, Medical and Industrial. The Medical sector comprises the Sempermed segment, while Industrial includes the Semperflex, Sempertrans and Semperform segments. In Q1 2012 both sectors contributed to growth in revenue. Revenue in the Medical sector rose by 2.0% to EUR 88.0 million, and in the Industrial sector by 5.9% to EUR 113.8 million. The lower EBIT in the Medical sector was at least partly offset by the very positive EBIT performance in the Industrial segments.

Revenue performance by sectors in EUR million

EBIT performance by sectors in EUR million

EBIT margin

by sectors in %

Sempermed

The Sempermed segment grew revenue by 2.0% in Q1 2012 to EUR 88.0 million. The main contributing factor was a higher sales volume of examination gloves. Due to the temporary weakening of raw materials prices towards the end of 2011 – particularly of natural latex – the price effects were negative.

Intensified competition, the higher cost of firewood due to heavy rainfalls in Thailand in January 2012, and start-up costs at the new production facility in Surat Thani in Thailand led to a significant decrease in EBIT from EUR 8.1 million to EUR 3.7 million. Besides continuing pressure on prices from global excess capacities, the below-average capacity utilisation of approx. 80% at the start of 2012 weighed on results. However, the further course of the quarter saw a return to full capacity utilisation.

In Q1 2012 Sempermed continued to make increased use of synthetic latex (nitrile) which had an average share of approx. 35% of total production (Q1 2011: 20%).

Compared to Q1 2011, there was an increase of approx. 8% in the total volume of examination gloves sold. The highest growth was in South America, but volume also increased notably in the US. In Europe, by contrast, volume fell just short of the previous year due to hesitant demand from major customers.

In the medium term the global market for examination gloves is expected to grow by 6-7% a year on average. However, despite this general market potential, competition is expected to remain fierce due to newly available production capacities and an aggressive pricing policy on the part of individual competitors.

At the new Sempermed plant in Surat Thani, Thailand, half the planned production lines for examination gloves were already in operation by the end of March 2012. Currently this production facility is concentrating on powder-free natural latex (NRL) lines with a current capacity of approx. 1.5 billion units. An expansion to 3 billion units is planned by the end of 2012. In addition, there is an option to expand to 4.7 billion units. The costs of commissioning and fine-tuning the individual lines to improve product quality significantly strained the segment's results in Q1 2012.

Compared with the previous year demand for surgical gloves was stable in Q1 2012. There was a shift within the product range from standard products to higher-quality products (powder-free latex and synthetic), allowing a slight increase in revenue. Measures to further improve efficiency of the packaging capacity at the Hungarian plant are currently being implemented.

2.0% rise in segment revenue to EUR 88.0 million

Significant drop in EBIT due to pressure on prices, startup costs and higher energy costs

Rise of 8% in volume for examination gloves

Capacity of 1.5 billion units at new facility in Surat Thani, Thailand

Semperflex

Segment revenue in Q1 2012 increased by 2.6% from EUR 46.5 million to EUR 47.7 million. Thanks to improvements in the product portfolio and cost savings, the Semperflex segment improved EBIT by 9.9% from EUR 7.5 million to EUR 8.2 million.

The positive trend in revenue and earnings was achieved in a market environment that was more challenging overall than in Q1 2011. Given the economic uncertainty, customers were more cautious, leading to a slight decrease in order books over the last three quarters. Production capacities are thus planned to be as flexible as possible, both to ensure satisfactory basic capacity utilisation and to permit optimal handling of orders at short notice.

With the exception of Southern Europe, large areas of the European market currently seem more stable and even favourable than recently expected. The North American market continued to grow. By contrast, demand in Asia fell short of expectations, with customer demand proving reluctant for much of Q1 2012.

The Hydraulic Hose business unit increased revenue slightly in the first three months of 2012. The key factor here was increased volume, due primarily to gains in market shares in North America and Europe. The new Semperflex capacity for hydraulic hoses in the Czech Republic, Thailand and China will be available from mid-2012 onwards, which will significantly increase output.

The Industrial Hose business unit saw a slight decrease in revenue in comparison to the very strong Q1 2011. However, improvements in the product portfolio and cost savings kept results stable. Business was good in most European markets, although demand was more modest in Southern Europe.

In line with demand in their main Western European markets, revenue in the Elastomer and Wear-resistant Sheeting business unit fell slightly in Q1 2012.

Sempertrans

Revenue in the Sempertrans segment grew by 13.2% or EUR 4.5 million to EUR 38.9 million in the first quarter of 2012. This development was mainly driven by price effects resulting from a rearrangement of the product mix to include fewer standard textile conveyor belts and more higher-value special textile and steel conveyor belts as well as improved output figures at the Polish plant. For this reason, a comparison of sales volumes would not be meaningful. EBIT was up by a considerable 41.7% or EUR 0.9 million to EUR 3.2 million, which led to an improvement in the EBIT margin from 6.7% in the first quarter of 2011 to 8.3%. This is a further confirmation of the segment's successful turnaround.

All in all, demand trends in the first quarter of 2012 were satisfactory, with positive momentum coming primarily from Europe, South America and Africa. Sales of steel conveyor belts increased in line with our strategic focus by almost 30% and prices are also up due to higher raw material costs. Owing to the shift in focus towards high-quality special textile and steel conveyor belts and the reduction in production volumes brought about by the strike in India, unit sales of textile conveyor belts declined by a third, although positive price effects were also realised in this area. These two developments cannot be compared, as the ratio of unit sales volume to revenue differs greatly between the two product groups.

2.6% rise in segment revenue to EUR 47.7 million

Demand largely positive in Europe and the US, caution in Asia

Growth in volume in hydraulic hoses, new capacity from mid-2012 available

Stable contribution to results from industrial hoses despite decline in revenue

13.2% rise in segment revenue to EUR 38.9 million

Boost to demand from Europe, South America and Africa

Demand for custom-built products and product innovations – such as extra-wide, oilresistant or flame-proof conveyor belts – was very encouraging. The medium-term goal for these product types is to grow significantly stronger than market.

Capacities were well utilised in the first quarter of 2012 in spite of relatively short-term order intakes. The Polish plant operated to full capacity, while utilisation at the French plant was also good. The Chinese location saw the approval of further compounds and an expansion of its product range. At the Indian plant, the services of a negotiation coordinator were used in order to settle the ongoing strike. One of the two lines resumed operations at the end of April 2012. Some of the production losses in India were again absorbed by the other Sempertrans plants.

In terms of products, Sempertrans will focus on achieving further growth with highervalue conveyor belts, while from a geographical perspective it will seek to expand in the South America and Southeast Asia regions.

Semperform

Semperform, the smallest segment of the Semperit Group, increased its revenue by 2.3% to EUR 27.2 million in the first quarter of 2012. This development was the result of positive price effects, which compensated the decline in volumes brought about by the selective approach to order acceptance. This strategy was also reflected in EBIT, which improved by 24.1% from EUR 2.6 million in the prior-year period to EUR 3.2 million.

With its seal profiles for windows and doors, the Building Profiles business unit is the largest in the Semperform segment. Thanks to selective order management combined with positive price effects, this business unit was able to increase its revenue overall despite a decline in volumes.

In the Industrial Moulded Parts business unit, demand remained modest at the beginning of the year, but showed signs of improvement towards the end of the quarter. Volumes developed well in the general construction and industry area, while in pipe construction they remained constant. The performance of the railway superstructure business was below average due to seasonal factors and weather conditions, but it managed to win a number of project orders.

Thanks to positive market developments in the US and a satisfactory performance in China, the Handrails business unit generated a slight increase in sales. The Chinese market remains subject to above-average levels of competition. There are no signs of easing price pressure, in particular in the business with original equipment manufacturers.

The smallest business unit Special Applications reported a slight fall in revenue due to an overall market slowdown, with positive price trends partially offsetting reduced volumes.

Overall satisfactory capacity utilisation

2.3% rise in segment revenue to EUR 27.2 million

Differing trends in market segments

Outlook

The further course of 2012 is expected to show a steady (albeit slow) improvement in the economic situation. However, in terms of the full year, no improvement in the pace of the economy is generally expected before 2013.

In this environment, the Semperit Group does not expect any significant increase in demand, with orders continuing at the level of Q1 2012.

In the Medical sector the Group expects that the measures initiated in production and distribution will lead to improved earnings in the course of Q2 2012. The focus will be on optimising pricing and capacity utilisation, with additional far-reaching measures to improve productivity and efficiency and gain market share. In parallel, the excess capacity for examination gloves and aggressive posture in pricing policy by several competitors are expected to continue.

In the Industrial sector, business is expected to continue at its present level. Besides optimising costs in material use, the focus will be on selective order management to exploit short-term sales opportunities and on flexible adjustment of existing production capacity. The new Semperflex capacity for hydraulic hoses in the Czech Republic, Thailand and China will be available from mid-2012 onwards. Significant stimulus for growth in the Industrial sector segments is expected in the medium term from the markets in Asia and Latin America, and also from the boom in the energy sector, agricultural production and the raw material sector, as well as concentration on selected niche markets.

Semperit Group is confirming its mid-term growth targets, with double-digit revenue growth on average in the period up to and including 2015, and EBIT margin continuing at approx. 10%.

Given the operational uncertainty, primarily due to trends in raw material prices, and the difficulty in predicting the economic environment, it is not possible at present to make any reliable forecast for revenue and earnings in the 2012 business year.

This is based on the assessment of the Management Board as of May 11, 2012, and does not take into account the effects of possible acquisitions, divestments or other structural changes in 2012.

These assessments are subject to both known and unknown risks and uncertainties, which may result in the actual outcome differing from the statements made here.

Slow improvement expected in economy

Measures to improve results in Medical sector

Growth stimulus for the Industrial sector from Asia and Latin America, boom in energy, agriculture and raw materials

Unchanged mid-term outlook

Limited visibility on business development 2012

Interim consolidated financial statements and notes

Consolidated income statement

in kEUR 1.1.–
31.3.2012
1.1.–
31.3.2011
Revenue 201,798 193,664
Changes in inventories 24 7,325
Own work capitalised 190 216
Operating revenue 202,012 201,205
Other operating income 10,441 5,413
Material costs –124,558 –123,206
Personnel expenses –29,985 –28,998
Other operating expenses –33,547 –29,125
Earnings before interest, tax, depreciation and amortisation
(EBITDA)
24,363 25,290
Depreciation and amortisation of tangible and intangible assets –7,832 –7,272
Earnings before interest and tax (EBIT) 16,530 18,019
Interest and other financial income 482 370
Expenses on financial assets 0 –3
Interest and other financial expenses –73 –51
Profit/loss attributable to redeemable non-controlling shares –1,815 –3,634
Financial result –1,406 –3,318
Earnings before tax (EBT) 15,125 14,700
Income taxes –3,545 –3,493
Earnings after tax 11,580 11,207
Earnings per share (diluted and undiluted) 0.56 0.54

Consolidated statement of comprehensive income

in kEUR 1.1.–
31.3.2012
1.1.–
31.3.2011
Earnings after tax 11,580 11,207
Other comprehensive income
"Available for sale" financial assets 56 –152
thereof deferred taxes –14 38
Currency translation differences for the period 3,533 –6,928
Reclassification to net profit 0 14
3,575 –7,028
Total recognised comprehensive income 15,155 4,179

Consolidated cash flow statement

in kEUR 1.1.–
31.3.2012
1.1.–
31.3.2011
Earnings after tax 11,580 11,207
Depreciation/write-ups of tangible and intangible assets 7,817 7,272
Profit and loss from disposal of assets –18 –134
Changes in non-current provisions –1,793 –261
Profit/loss attributable to redeemable non-controlling shares 1,815 3,634
Other non-cash expense/income –14 41
Gross cash flow 19,387 21,760
Increase/decrease in inventories 3,473 –16,838
Increase/decrease in trade receivables –7,210 –19,871
Increase/decrease in other receivables and assets –1,506 –1,301
Increase/decrease in trade payables 6,152 1,385
Increase/decrease in other liabilities and current provisions 5,780 9,128
Changes in working capital resulting from currency translation
adjustments
882 –2,952
Cash flow from operating activities 26,958 –8,689
Proceeds from sale of tangible and intangible assets 28 921
Proceeds from sale of current and non-current financial assets 0 2,000
Investments in tangible and intangible assets –8,560 –9,503
Investments in current and non-current financial assets 0 –1,110
Cash flow from investing activities –8,532 –7,692
Net payments from current and non-current financing liabilities 148 0
Cash flow from financing activities 148 0
Net increase/decrease in cash and cash equivalents 18,574 –16,381
Effects resulting from currency translation 365 –3,434
Cash and cash equivalents at the beginning of the period 97,892 139,186
Cash and cash equivalents at the end of the period 116,830 119,372

Consolidated balance sheet

ASSETS

in kEUR 31.3.2012 31.12.2011
Non-current assets
Intangible assets 5,435 5,615
Tangible assets 220,113 216,720
Investments in associated companies 767 767
Other financial assets 11,478 11,884
Other assets 130 310
Deferred taxes 9,611 8,772
247,533 244,068
Current assets
Inventories 134,122 137,595
Trade receivables 121,539 114,329
Other financial assets 5,518 3,695
Other assets 12,009 11,390
Current tax receivables 6,551 7,681
Cash and cash equivalents 116,830 97,892
396,569 372,582
TOTAL ASSETS 644,102 616,650

EQUITY AND LIABILITIES

in kEUR 31.3.2012 31.12.2011
Equity
Share capital 21,359 21,359
Capital reserves 21,503 21,503
Revenue reserves 328,497 316,875
Currency translation adjustments 16,249 12,716
387,608 372,453
Non-current provisions and liabilities
Provisions for pension and severance payments 36,397 36,924
Other provisions 15,833 17,084
Liabilities from redeemable non-controlling shares 98,210 97,292
Other financial liabilities 2,997 3,074
Other liabilities 196 200
Deferred taxes 2,164 2,178
155,798 156,751
Current provisions and liabilities
Other provisions 23,542 20,561
Liabilities to banks 6,004 6,178
Trade payables 46,260 38,815
Other financial liabilities 8,613 8,816
Other liabilities 9,160 7,084
Current tax liabilities 7,119 5,991
100,696 87,445
TOTAL EQUITY AND LIABILITIES 644,102 616,650

Consolidated statement of the changes in equity

Share Capital Revenue Revaluation Currency
in kEUR capital reserves reserves reserves translation Total
Balance at 31.12.2010 21,359 21,503 288,811 –198 19,590 351,065
Total recognised comprehensive income 0 0 11,207 –114 –6,914 4,179
Balance at 31.3.2011 21,359 21,503 300,019 –312 12,675 355,244
Balance at 31.12.2011 21,359 21,503 317,172 –297 12,716 372,453
Total recognised comprehensive income 0 0 11,580 42 3,533 15,155
Balance at 31.3.2012 21,359 21,503 328,752 –255 16,249 387,608

Notes to the interim financial statements

Accounting policies

The interim financial statements as at March 31, 2012 have been drawn up in accordance with International Financial Reporting Standards (IFRS) and IAS 34 Interim Financial Reporting. No material changes have been made to the accounting policies used. For more information on accounting policies please see the consolidated financial statements as at December 31, 2011, which form the basis for these interim financial statements.

This interim report of Semperit Group has not been audited or reviewed.

Associates (equity method)

The consolidated carrying amount of Isotron Deutschland GmbH as at March 31, 2012 was kEUR 767 (December 31, 2011: kEUR 767).

As at March 31, 2012 Semperit Group had extended loans of kEUR 563 (December 31, 2011: kEUR 563) to associates.

Investments in tangible and intangible assets

In the first three months of 2012 Semperit acquired tangible and intangible assets in the amount of kEUR 8,560 (previous year: kEUR 9,503). Tangible and intangible assets with a net carrying amount of kEUR 10 (previous year: kEUR 785) were sold.

Dividend

A dividend of EUR 0.80 per share was paid out on May 2, 2012.

Divident
Year Number of
shares
payment in
kEUR
EUR per
share
2012 20,573,434 16,459 0.80
2011 20,573,434 25,717 1.25

Contingent liabilities

There have been no material changes in contingent liabilities since the last reporting date.

Related-party transactions

Outstanding balances and transactions between Semperit Aktiengesellschaft Holding and its subsidiaries were eliminated in the course of consolidation and are not discussed here.

B&C Semperit Holding GmbH is the direct majority shareholder of Semperit Aktiengesellschaft Holding and B&C Privatstiftung is the dominant legal entity. B&C Industrieholding GmbH is the shareholder holding an indirect majority stake. It draws up and publishes consolidated financial statements in which Semperit Group is consolidated. Under IAS 24, B&C Privatstiftung and all its subsidiaries, joint ventures and associated companies are related parties of the Semperit Group.

Related parties of the Semperit Group include the members of the Management and Supervisory Boards of Semperit Aktiengesellschaft Holding, the managing directors and Supervisory Board members of all companies which directly or indirectly hold a majority stake in Semperit Aktiengesellschaft Holding, the members of the Management Board of B&C Privatstiftung and close family members of these Management and Supervisory Board members and managing directors.

The level of transactions with associated companies and other related parties is low, and they are conducted on normal business terms and conditions.

Transactions with co-partners

The fully consolidated companies Semperflex Asia Corp. Ltd., Siam Sempermed Corp. Ltd., Shanghai Semperit Rubber & Plastic Products Co. Ltd. and Semperflex Shanghai Ltd. conduct business with the non-controlling co-partner of these companies, Sri Trang Agro-Industry Plc, at established market conditions. Sempertrans Best (Shandong) Belting Co. Ltd. conducts business with Wang Chao Coal & Electricity Group, the non-controlling co-partner of this company, at established market conditions.

Changes in the scope of consolidation

The business license for Semperit (Shanghai) Management Co. Ltd, China, was issued in January 2012. The company will provide management, finance, human resource and purchasing functions on the Chinese market.

Events after the balance sheet date

Semperit Aktiengesellschaft Holding concluded a framework loan agreement with a three-year term for EUR 180.0 million with five banks on May 7, 2012. The purpose is to secure financing of further growth.

No other significant events occurred between March 31, 2012 and the date this report was approved for publication, on May 11, 2012.

Statement of the legal representatives

We confirm to the best of our knowledge that the condensed interim financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group as required by the applicable accounting standards and that the Group management report gives a true and fair view of important events that have occurred during the first three months of the financial year and their impact on the condensed interim financial statements, of the principal risks and uncertainties for the remaining nine months of the financial year and of the major related party transactions to be disclosed.

Vienna, May 11, 2012

The Management Board

Richard Ehrenfeldner Member of the Management Board

Richard Stralz Member of the Management Board

Thomas Fahnemann Chairman

Johannes Schmidt-Schultes Chief Financial Officer

Semperit share

Key figures 1–3/2012
Lowest price in EUR 28.66
Highest price in EUR 33.90
Price at 31.3. in EUR 32.14
Market capitalisation at 31.3. in EUR million 661.2
Earnings per share in EUR 0.56

The 123rd Annual General Meeting took place on April 23, 2012 in Wimpassing, Austria. All resolutions of the Annual General Meeting can be viewed on www.semperit.at/ir. The Annual General Meeting agreed to the Management Board's proposal to pay a dividend of EUR 0.80 per eligible share. The dividend was paid on May 2, 2012, the ex-dividend day was April 26, 2012.

Contact

Semperit AG Holding Modecenterstrasse 22 1031 Vienna, Austria

Investor Relations

Tel.: +43 1 79 77-210 Fax: +43 1 79 777-600 [email protected] www.semperit.at/ir

Imprint

Ownership and publisher: Semperit Aktiengesellschaft Holding, Modecenterstrasse 22, 1031 Vienna, Austria

We have prepared this quarterly report and verified the information contained in it with the greatest possible care. In spite of this, rounding, typesetting and printing errors cannot be ruled out. Rounding of differences in the totalling of rounded amounts and percentages may arise from the automatic processing of data.

The forecasts, plans and forward-looking statements contained in this report are based on the knowledge and information available and the assessments made at the time that this report was prepared. As is true of all forward-looking statements, these statements are subject to risk and uncertainties. As a result, the actual events may deviate significantly from these expectations. No liability whatsoever is assumed for the accuracy of projections or for the achievement of planned targets or for any other forward-looking statements

Statements referring to people are valid for both men and women. This quarterly report was prepared in German and English. In case of doubt, the German version shall take precedence.

Financial Calendar 2012

August 14, 2012 Half-year financial report 2012 November 13, 2012 Report on the third quarter of 2012

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