Progress-Werk Oberkirch AG: PWO confirms 2016 preliminary figures and is on track to meet medium-term targets

Press Release

PWO confirms 2016 preliminary figures and is on track to meet medium-term targets

• Company again achieves a high level of new business in the amount of EUR 730 million
• Orders already received to fuel dynamic growth expected until 2020
• Higher dividend proposed for 2016

Oberkirch, March 30, 2017 - In yesterday's meeting, the Supervisory Board of Progress-Werk Oberkirch AG reviewed, discussed and approved the separate and consolidated financial statement for the 2016 fiscal year, and thereby adopted the separate financial statements of Progress-Werk Oberkirch AG.

The preliminary figures for the 2016 fiscal year released on February 22, 2017 were also confirmed. The Group's revenue and total output increased only moderately to EUR 409.6 million (p/y: EUR 404.6 million) and EUR 423.5 million (p/y: EUR 413.3 million), respectively, due to declining material prices. EBIT before currency effects rose to EUR 21.6 million (p/y: EUR 17.1 million). EBIT including currency effects totaled EUR 19.7 million (p/y: EUR 18.1 million). Net income for the period reached EUR 9.5 million (p/y: EUR 7.5 million), earnings per share equaled EUR 3.05 (p/y: EUR 2.41), and free cash flow amounted to EUR 13.0 million (p/y: EUR -1.8 million). The equity ratio remained at the prior year's level of around 30 percent.

New business reached a record EUR 730 million (p/y: EUR 600 million). After acquiring an order volume of roughly EUR 1.3 billion over the past two years, we have the necessary potential to grow our revenue to over EUR 500 million p.a. by the year 2020 and achieve a significantly higher-than-average increase in our EBIT before currency effects. For the years 2017 and 2018, we expect incoming orders to normalize somewhat because we have already received key large orders from our customers as anticipated. Our full concentration will now be on the upcoming start-ups and ramp-ups in series productions.

The Management Board and Supervisory Board of Progress-Werk Oberkirch will propose a dividend of EUR 1.60 (p/y: EUR 1.55) to the Annual General Meeting on May 23, 2017. This proposal takes into consideration both the solid development of the Group's business and the strengthening of its balance sheet from the reduction in last year's dividend payout ratio.

The 2016 Annual Report will be available on our homepage www.progress-werk.de/en on March 31, 2017.

Progress-Werk Oberkirch AG
The Management Board

PWO company profile
PWO is one of the world's leading developers and manufacturers of advanced metal components and systems in lightweight construction for automobile safety and comfort. The Group has developed a unique knowledge in the forming and joining of metals over the course of its more than 95-year history since it was founded in 1919. The German location at Oberkirch today employs around 1,500 staff members. PWO is globally represented with further sites in China, Canada, Mexico, and Czechia. The Group employs a total of approximately 3,200 staff members.

PW0 is a partner to the global automotive industry for the development and production of innovative products in the divisions of "Mechanical components for electrical and electronic applications", "Safety components for airbags, seats and steering" and "Components and subsystems for vehicle bodies and chassis".