Ad hoc: PCF GmbH: Preliminary Financial Information for the Financial Year 2016

PCF GmbH herewith informs, that the parent company Pfleiderer Group S.A. has today published the following Current Report  No. 16/2017: "Pfleiderer Group S.A. (together with its subsidiary PCF GmbH, "Pfleiderer") announces selected preliminary financial information for the financial year ended December 31, 2016:

• Consolidated net sales amount to approximately EUR960 million (a decrease of 2.4% compared to the financial year ended December 31, 2015). Such decrease was primarily driven by lower sales prices and a negative exchange rate effect. Net sales of our Core West segment amount to approximately EUR659 million (an increase of 1.2% compared to the financial year ended December 31, 2015); the increase was primarily driven by higher sales volumes and an increase of value-added product sales. Net sales of our Core East segment amount to approximately EUR339 million (a decrease of 9.4% compared to the financial year ended December 31, 2015); the decrease was primarily driven by declining sales of our MDF plant in Grajewo, lower sales prices in Poland due to lower raw material prices and a negative exchange rate effect.
• Consolidated gross profit amounts to approximately EUR252 million (adjusted for purchase price allocation effects of approximately EUR29 million due to the reverse takeover and changes in the corporate structure), which represents an increase of 3.4 % compared to the financial year ended December 31, 2015. Such increase was primarily driven by increased sales volumes of value-added products and positive raw material price effects.
• Sustainable EBITDA amounts to approximately EUR149 million (an increase of 12.5% compared to the financial year ended December 31, 2015). Such increase was primarily driven by the positive gross profit development as well as cost savings and synergies. The main non-sustainable items are integration costs  in connection with the "One Pfleiderer" project (approximately EUR12 million), costs and purchase price allocation effects in relation to the reverse takeover and the re-IPO (approximately EUR10 million) as well as follow-up cost regarding the anti-trust proceedings in Germany (approximately EUR6 million). Sustainable EBITDA in our Core West segment amounts to approximately EUR101 million (an increase of 29.2% compared to the financial year ended December 31, 2015). Sustainable EBITDA in our Core East segment amounts to approximately EUR49 million (a decrease of 9.7% compared to the financial year ended December 31, 2015).
• Sustainable EBITDA margin is equal to approximately 15.5% (compared to 13.4% in the financial year ended December 31, 2015). Sustainable EBITDA margin in our Core West segment is equal to approximately 15.3% (compared to 11.9% in the financial year ended December 31, 2015), with such increase primarily being driven by cost savings and operational improvement measures. Sustainable EBITDA margin in our Core East segment is equal to approximately 14.5 % (compared to 14.6% in the financial year ended December 31, 2015); due  to cost savings and operational improvement measures, the margin was only slightly down despite the 9.7% decrease in sustainable EBITDA. 
• Capital expenditures amount to approximately EUR52 million (compared to EUR47 million in the financial year ended December 31, 2015), thereof approximately EUR17 million maintenance capex.
• Cost synergies achieved in relation to the implementation of the "One Pfleiderer" project amount to approximately EUR18 million, thereof approximately EUR8 million in Core East and approximately EUR10 million in Core West.
• Net leverage ratio (net financial debt / sustainable EBITDA) is equal to approximately 1.6x.

The preliminary financial information above is based on internal management accounts and has been prepared by the Pfleiderer's management. This preliminary financial information has not been audited, reviewed or verified and no procedures have been completed by Pfleiderer's external auditors with respect thereto. It is not intended to be a comprehensive statement of Pfleiderer's financial or operational results for the financial year ended December 31, 2016, and you should not place undue reliance thereon. This preliminary information is subject to confirmation in Pfleiderer's audited consolidated financial statements and audit report for the financial year ended December 31, 2016. Consequently, upon publication of Pfleiderer's audited results for the year ended December 31, 2016, Pfleiderer may report results that are materially different from those set forth in this current report. The consolidated annual report for the financial year ended December 31, 2016 is expected to be published on April 26, 2017. The preliminary financial information above includes the full 12 month in 2016 as it does not reflect that the first-time consolidation of Pfleiderer group occurred on January 19, 2016. Further the preliminary financial information include the adjustment of the amortization of the fair-value entries for the purpose of first-time consolidation of Pfleiderer group and "non-sustainable items". Therefore, the preliminary financial information above will not be fully comparable with the reported audited financial statements for 2016 (period from January 19, 2016 through December 31, 2016). ********* This report was prepared pursuant to Article 17 Section 1 of Regulation (EU) No. 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and on repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC (OJ EU L 173/1 dated June 12, 2014). March 20, 2017"