H&R GmbH & Co. KGaA

Quarterly Report • May 21, 2025

INTERIM STATEMENT

of H&R GmbH & Co. KGaA

AS OF 1st QUARTER OF 2025

Overview

• Solid start into the year with slight improvements for sales revenues and earnings
• Performance of segment REFINING pushes EBITDA over previous years's level
• Full-year guidance remains unchanged

H&R GMBH & CO. KGAA IN FIGURES*

IN € MILLION	1/1-3/31/2025	1/1-3/31/2024	Change (absolute)
Sales revenue	345.8	337.0	8.8
Operating income (EBITDA)**	22.4	21.3	1.1
EBIT	7.7	6.8	0.9
EBT	4.7	3.6	1.1
Consolidated net income	2.4	2.1	0.3
Consolidated income attributable to shareholders	1.9	1.5	0.4
Consolidated income per share (undiluted) in €	0.05	0.04	0.01
Cash flow from operating activities	-8.1	11.4	-19.5
Cash flow from investing activities	-9.7	-11.7	2.0
Free cash flow	-17.7	-0.2	-17.5
Cash flow from financing activities	16.1	14.3	1.8
	3/31/2025	12/31/2024	Change (absolute)
Balance sheet total	1,011.4	1,014.8	-3.4
Net working capital	286.6	256.9	29.7
Equity	466.0	468.6	-2.6
Equity ratio (in %)	46.1	46.2	-0.1
No. of employees	1,714	1,705	9

THE SEGMENTS IN FIGURES*

	1/1-3/31/2025	1/1-3/31/2024	Change (absolute)
IN € MILLION Chemical Pharmaceutical Raw Materials Refining
Sales	217.4	206.4	11.0
EBITDA	13.9	10.5	3.4
Chemical Pharmaceutical Raw Materials Sales
Sales	123.7	122.9	0.8
EBITDA	9.7	10.9	-1.2
Plastics
Sales	9.6	12.3	-2.7
EBITDA	-0.4	0.4	-0.8
Reconciliation
Sales	-4.9	-4.6	-0.3
EBITDA	-0.9	-0.5	-0.4

* Rounding differences may occur. ** EBITDA – consolidated income before income taxes, other financial income and expenses, depreciation, amortization and impairment, and appreciation of fixed assets and property, plant and equipment.

Letter from the Executive Board

Dear Shareholders, Dear Business Partners,

The first quarter of 2025 provided the H&R Group with a solid start to the year overall. Although the momentum of the second half of the previous year was not maintained to the same extent, with consolidated operating income (EBITDA) for the first quarter of € 22.4 million, the first three months were a good 5% higher than in the same quarter of the previous year (first three months of 2024: € 21.3 million).

The other earnings levels also improved in the spring quarter of 2025. Details can be found in the familiar table of key figures on the previous page. Our fullyear forecast for 2025 - put at between € 85 million and € 100 million with the publication of the annual report - is therefore within the achievable range. At least if the trend continues in the coming quarters.

At € 345.8 million (three months 2024: € 337.0 million), sales revenue at the beginning of the year exceeded the previous year's figure. At the bottom line, consolidated net income attributable to shareholders amounted to € 1.9 million (three months 2024: € 1.5 million). Overall, H&R KGaA thus generated modest but improved earnings per share of € 0.05.

It remains to be seen what positive impetus the overall economic situation will bring for the 2025 financial year: According to some experts, the German economy has made a good start to the new year. At the same time, however, a thorough economic recovery is not in sight. As a result, economic output in Germany has already been stagnating for 3 years.

The trade conflicts triggered by the USA are likely to become a source of uncertainty and an increasing burden. China in particular will look for alternative markets, as it did a few years ago, and put European producers under considerable pressure. For paraffins, a corresponding market distortion already challenged us years ago.

Even without the direct negative effects of higher US tariffs, the increased uncertainty caused by the erratic US trade policy alone will have a negative impact on global economic performance.

In addition, the German economy in particular is not only suffering from a weak economic environment, but also from structural problems. Resolving these is not a task that companies like H&R want to avoid. On the contrary: the future viability of our own business model is the focus of our company. In addition to the will to innovate, however, it also requires sufficient leeway between the regulatory guard rails and, above all, the financial means to manage the change.

This is not an easy situation for H&R: the existing traditional business is expected to generate the investments for the transition towards sustainable input materials and products, but at the same time requires funds to meet constantly increasing requirements. The major challenge for the Group will lie in allocating our financial resources.

I hope you enjoy reading the further details later in this quarterly statement.

Hamburg, May 2025

Sincerely yours,

Niels H. Hansen Sole Managing Director

Business Trend in the First Quarter of 2025

Little momentum at the start of the year

After good quarters in the second half of 2024, this momentum continued only modestly at the start of the year. The Group was faced with an economic situation in which gross domestic product (GDP) grew by 0.2% in the first quarter of 2025 according to the German Federal Statistical Office. This made it all the more remarkable that the H&R Group was able to exceed the figures for the same quarter of the previous year and thus present a solid performance.

Business figures nevertheless recover

In the first quarter of 2025, the Group achieved a slightly improved EBITDA of € 22.4 million (first

CHANGES IN SALES AND INCOME

three months of 2024: € 21.3 million) and likewise stronger sales of € 345.8 million (first three months of 2024: € 337.0 million).

With depreciation and amortization slightly higher by around 1.2% compared to the previous year, EBIT amounted to € 7.7 million (three months 2024: € 6.8 million). There was a similar trend in earnings before taxes (EBT), which amounted to € 4.7 million (first three months of 2024: € 3.6 million). Consolidated net income attributable to shareholders closed at € 1.9 million (three months 2024: € 1.5 million). H&R KGaA thus generated earnings per share of € 0.05 (three months 2024: € 0.04).

			Change
IN € MILLION	1/1-3/31/2025	1/1-3/31/2024	(absolute)
Sales revenue	345.8	337.0	8.8
EBITDA	22.4	21.3	1.1
EBIT	7.7	6.8	0.9
EBT	4.7	3.6	1.1
Consolidated income attributable to shareholders	1.9	1.5	0.4
Consolidated income per share (undiluted), €	0.05	0.04	0.01

Refing segment catches up, international business declines slightly

The H&R Group's two core segments made positive operating contributions to the stable overall result, but swapped positions compared to the same quarter of 2024: the ChemPharm REFINING segment made the main contribution. With EBITDA of € 13.9 million in the first quarter of 2025 (first three months of 2024: € 10.5 million), it also performed around € 3.4 million better than in the same quarter of the previous year.

The result was achieved on sales of € 217.4 million, an increase of 5.3% (three months 2024: € 206.4 million). Overall, we recorded robust demand in the first quarter of 2025, with stable to slightly improved volumes.

Product prices and quotations were also in line with our expectations at the start of the year. The latter brightened somewhat compared to the end of the previous year and made it easier for us to negotiate prices with buyers in our customer industries to some extent. The business of our two German production sites benefited more from this than our international business.

At € 9.7 million, our international activities in the ChemPharm SALES segment recorded a lower operating result overall in the first quarter compared to the same quarter of the previous year (first three months of 2024: € 10.9 million). Although they thus lost their position as the strongest earnings driver, international business once again proved to be an important stabilizing factor at the start of the year. At € 123.7 million, sales in the three-month period remained almost at the previous year's level (three months 2024: € 122.9 million).

The PLASTICS segment was fully impacted by the weak automotive industry in the first quarter of 2025: the GAUDLITZ Group companies were unable to make a positive contribution to EBITDA in the first quarter of 2025, instead burdening consolidated earnings with a loss of € -0.4 million (first three months of 2024: € 0.4 million). Sales also declined, from € 12.3 million in the previous year to € 9.6 million in Q1-2025.

Unfortunately, it is currently not clear when and to what extent the situation will improve sustainably for the numerous German suppliers. Already one of the most difficult value chains, the crisis affecting the major automotive manufacturers is making conditions even more difficult for suppliers, component manufacturers and parts suppliers. The GAUDLITZ Group has so far been able to mitigate this development through its consistent restructuring in recent years and the relocation of production capacities to other EU countries, among other things. However, the Group has not yet been able to benefit significantly from this.

Financials and assets: cash positions volatile

In the three months of the 2025 financial year to date, the Group generated a reduced and negative cash flow from operating activities of € -8.1 million (three months 2024: € 11.4 million) based on a slightly higher consolidated net income of € 2.4 million (three months 2024: € 2.1 million).

In principle, the Group's cash flow can fluctuate significantly as a result of its business model. This is primarily due to changes in net working capital requirements. While this usually results from fluctuations in the prices of our input materials, the situation as at 31 March was somewhat different: this was primarily due to reporting date-related changes in net working capital for the Refining segment, which was characterized by a higher level of receivables on the one hand and the simultaneous reduction in liabilities on the other.

Our investments in maintenance and modernization measures decreased by 5.2% in the first three months of 2025 (first three months of 2025: € 10.2 million; first three months of 2024: € 10.8 million).

Free cash flow most recently amounted to € -17.7 million for the first quarter of 2025 (first three months of 2024: € -0.2 million).

FINANCIAL POSITION

IN € MILLION	1/1-3/31/2025	1/1-3/31/2024	Change (absolute)
Cash flow from operating activities	-8.1	11.4	-19.5
Cash flow from investing activities	-9.7	-11.7	2.0
Free cash flow	-17.7	-0.2	-17.5
Cash flow from financing activities	16.1	14.3	1.8
Cash and cash equivalents as of September 30	59.1	82.7	-23.6

ASSETS AS OF 3/31/2025

LIABILITIES AND SHAREHOLDERS EQUITY AS OF 3/31/2025

IN MIO. € (PREVIOUS YEAR'S FIGURES 12/31/24) IN MIO. € (PREVIOUS YEAR'S FIGURES 12/31/24)

The H&R Group's total assets decreased slightly to € 1,011.4 million at the end of the first three months (December 31, 2024: € 1,014.8 million).

On the assets side, higher trade receivables in particular led to an increase in current assets to € 455.1 million (December 31, 2024: € 450.6 million). Noncurrent assets decreased slightly to € 556.3 million after € 564.3 million at the end of the previous year.

On the liabilities side of the balance sheet, higher liabilities to banks and lower trade payables in particular led to a slight increase in current liabilities from € 295.1 million to € 302.1 million.

At € 243.3 million, non-current liabilities were lower than at the end of the year (December 31, 2024: € 251.2 million) due to lower liabilities to banks.

The improved revenue reserves including consolidated net income were more than offset by weaker other reserves. Equity as at March 31, 2025 therefore fell slightly to € 466.0 million, just below the figure at the reporting date (December 31, 2024: € 468.6 million). This corresponds to a reduced equity ratio of 46.1% (December 31, 2024: 46.2%).

Outlook

With the publication of the 2024 Annual Report, the company set a target for annual sales of at least € 1.3 billion for the 2025 financial year, in anticipation of constant to slightly rising input material prices, and thus approximately the sales volume achieved in the 2024 financial year. At the same time, we have defined a percentage expectation for the individual segments. After the first quarter of 2025 and despite the lower feedstock prices to date, H&R KGaA is currently on track to close at the previous year's level.

The sales weighting deviated only slightly from the forecast (segment forecast 2025: ChemPharm Sales: 33.0%, achieved 35.8%; segment forecast 2025 ChemPharm Refining: 64.0%, achieved 61.4%; Plastics segment forecast 3%, achieved 2.8%).

In terms of EBITDA distribution, however, the ChemPharm Sales segment delivered an earnings contribution in absolute terms up to the end of March 2025 that significantly exceeded the forecast with a share of around 43.3% instead of the expected 33.0%.

The Plastics segment closed with a worse result, with no contribution to earnings instead of the expected 3.0%. At 56.7% (forecast: 64.0%), the ChemPharm Refining segment also fell slightly short of expectations in terms of EBITDA. In the Chemical-Pharmaceutical business activities, the Refining segment nevertheless recovered significantly compared to the same quarter of the previous year and once again exceeded the international sites in terms of the absolute amount of its contribution to earnings as at the end of March 2025.

In April, we set our target for the operating result (EBITDA) at a range of € 85.0 million to € 100.0 million for the publication of the 2024 Annual Report. At the beginning of the 2025 financial year, H&R is fully within this range.

Subject to further developments in our markets, we are currently confident that we will achieve this guidance.

Consolidated Statement of Financial Position of H&R GmbH & Co. KGaA

as of March 31, 2025

	3/31/2025	12/31/2024
IN € THOUSAND Current assets
Cash and cash equivalents	59,128	62,531
Trade receivables	159,610	134,999
Income tax refund claims	5,610	6,040
Inventories	203,777	215,191
Other financial assets	10,643	14,157
Other assets	16,289	17,656
Current assets	455,057	450,574
Non-current assets
Property, plant and equipment	437,599	445,211
Goodwill	17,020	17,020
Other intangible assets	13,361	12,951
Shares in holdings valued at equity	3,070	3,120
Other financial assets	80,435	80,769
Other assets	1,987	2,105
Deferred tax assets	2,908	3,098
Non-current assets	556,340	564,274
Total assets	1,011,397	1,014,848

IN € THOUSAND	3/31/2025	12/31/2024
Current liabilities
Liabilities to banks	110,209	88,621
Trade payables	76,808	93,285
Liabilities from supplier financing agreements	54,877	56,971
Income tax liabilities	5,519	4,538
Contract liabilities	1,516	3,027
Other provisions	20,206	16,061
Other financial liabilities	12,395	17,196
Other liabilities	4,197	15,356
Current liabilities	302,148	295,055
Non-current liabilities
Liabilities to banks	59,270	63,186
Pension provisions	54,825	57,584
Other provisions	3,137	3,179
Other financial liabilities	31,148	31,705
Other liabilities	89,564	90,067
Deferred tax liabilities	5,324	5,487
Non-current liabilities	243,268	251,208
Equity
Subscribed capital	95,156	95,156
Capital reserve	46,427	46,427
Retained earnings	287,638	283,773
Other reserves	-4,097	1,505
Equity of H&R GmbH & Co. KGaA shareholders	425,124	426,861
Non-controlling interests	40,857	41,724
Equity	466,981	468,585
Total liabilities and shareholders' equity	1,011,397	1,014,848

LIABILITIES AND SHAREHOLDERS' EQUITY

Consolidated Income Statement of H&R GmbH & Co. KGaA

January 1 to March 31, 2025

IN € THOUSAND	1/1-3/31/2025	1/1-3/31/2024
Sales revenue	345,843	336,961
Changes in inventories of finished and unfinished goods	-10,879	-9,087
Other operating income	11,142	6,785
Cost of materials	-256,950	-253,877
Personnel expenses	-27,403	-26,673
Depreciation, impairments and amortization of intangible assets and property, plant and equipment	-14,627	-14,460
Other operating expenses	-39,340	-32,797
Operating result	7,786	6,852
Income from holdings valued at equity	-50	-38
Financing income	78	181
Financing expenses	-3,121	-3,353
Income before tax (EBT)	4,693	3,642
Income taxes	-2,251	-1,559
Consolidated income	2,442	2,083
of which attributable to non-controlling interests	-549	614
of which attributable to shareholders of H&R GmbH & Co. KGaA	1,893	1,469
Earnings per share (undiluted), €	0.05	0.04
Earnings per share (diluted), €	0.05	0.04

Consolidated Cash Flow Statement of H&R GmbH & Co. KGaA

January 1 to March 31, 2025

	IN € THOUSAND		1/1-3/31/2025	1/1-3/31/2024
1.		Consolidated income	2,442	2,083
2.		Income taxes	2,251	1,559
3.		Net interest income	3,043	3,172
4.	+/−	Depreciation and amortization/appreciation on fixed assets and intangible assets	14,628	14,461
5.	+/−	Increase/decrease in non-current provisions	-661	-564
6.	+	Interest received	78	181
7.	−	Interest paid	-1,976	-2,390
8.	+/−	Income tax received/paid	-1,297	-6,067
9.	+/−	Other non-cash expenses/income	1,092	464
10.	+/−	Increase/decrease in current provisions	4,248	5,431
11.	−/+	Gain/loss from the disposal of intangible assets	-308	-35
12.	−/+	Changes in net working capital	-34,911	3,657
13.	+/−	Changes in remaining net assets/other non-cash items	3,301	-10,545
14.	=	Cash flow from operating activities (sum of items 1 to 13)	-8,070	11,407
15.	+	Proceeds from disposals of property, plant and equipment	1,663	14
16.	−	Payments for investments in property, plant and equipment	-10,243	-10,810
17.	−	Payments for investments in intangible assets	-1,085	-859
18.	=	Cash flow from investing activities (sum of items 15 to 17)	-9,665	-11,655
19.	=	Free cash flow (sum of items 14 and 18)	-17,735	-248
20.	−	Payments for settling financial liabilities	-98,887	-50,723
21.	+	Proceeds from taking up financial liabilities	115,022	65,048
22.	=	Cash flow from financing activities (sum of items 20 to 21)	16,135	14,325
23.	+	Changes in cash and cash equivalents (sum of items 14, 18 and 22)	-1,600	14,077
24.	+	Cash and cash equivalents at the beginning of the period	62,531	69,443
25.	+/−	Change in cash and cash equivalents due to changes in exchange rates	-1,803	-795
26.	=	Cash and cash equivalents at the end of the pe riod	59,128	82,725

Forward-Looking Statements

This document contains forward-looking statements that reflect management's current views with respect to future events. These statements are subject to risks and uncertainties that are beyond H&R KGaA's ability to control or estimate precisely, such as future market and economic conditions, the behavior of other market participants, the ability to successfully integrate acquired businesses and achieve anticipated synergies, and the actions of government

Financial Calendar

regulators. If any of these or other risks and uncertainties occur or if the assumptions underlying any of these statements prove incorrect, the actual results may be materially different from those expressed or implied by such statements. H&R KGaA does not intend to or assume any separate obligation to update forward-looking statements to reflect events or developments occurring after the publication of this interim report.

May 27, 2025	Annual General Meeting 2025
August 15, 2025	Half Year Report 2025
November 14, 2025	Interim Statement as of 3rd Quarter 2025

Contact

If you have questions or would like further information, please contact:

H&R GmbH & Co. KGaA

Investor Relations Am Sandtorkai 50 20457 Hamburg www.hur.com

Ties Kaiser

Phone: +49 (0)40-43218-321 Fax: +49 (0)40-43218-390 E-mail: ties.kaiser@hur.com

Tanja Passlack

Phone: +49 (0)40-43218-301 Fax: +49 (0)40-43218-390 E-mail: tanja.passlack@hur.com

H&R GmbH & Co. KGaA Neuenkirchener Straße 8 48499 Salzbergen Germany

Phone: +49 (0)59 76-9 45-0 Fax: +49 (0)59 76-9 45-308

E-mail: info@hur.com Website: www.hur.com