Airopack Technology Group AG: Half year report 2016

EQS Group-Ad-hoc: Airopack Technology Group AG / Schlagwort(e):
Halbjahresergebnis
Airopack Technology Group AG: Half year report 2016

30.09.2016 / 18:00
Veröffentlichung einer Ad-hoc-Mitteilung gemäss Art. 53 KR.


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Publication of 2016 half-year report, business update and outlook

Baar, 30 September 2016 - Today Airopack Technology Group AG ("ATG") has
published its 2016 half-year report.

Half-year report
The consolidated net result in the first half of 2016 amounted to negative
EUR 16.2 million. As from the acquisition of the 50% stake in the Airolux
AG joint venture for an amount of EUR 25 million in May 2016, the losses of
Airolux AG and its subsidiaries are fully consolidated in the ATG result.
Furthermore, the consolidated result is strongly influenced by incidental
expenses of EUR 5.6 million incurred in connection with the acquisition of
the 50% stake in the Airolux AG joint venture, the financing arrangement
entered into with funds managed by affiliates of Apollo Global Management,
LLC (NYSE:APO) (the "Apollo Funds"), and the relocation of the
manufacturing facility from Switzerland to the Netherlands. The ongoing
expansion and strengthening of the organizational footprint in the
Netherlands will better position ATG for the roll-out of Airopack, but has
entailed one-time costs and coincided with a temporary production halt in
the second quarter. 2016 will be a transition year, but Group Management is
confident that the operational result of ATG will rapidly improve once this
transition has been completed and ATG can unlock its growth potential.

As at 30 June 2016, the consolidated net equity amounted to negative EUR
15.2 million. On 7 July 2016, a capital increase of approx. EUR 42 million
was completed. The pro forma shareholders' equity after completion amounted
to approx. EUR 27 million.

The 2016 half-year report is available for download on the ATG website
www.airopackgroup.com under the link - investor relations - reports
(http://www.airopackgroup.com/en/investor-relations/reports/).

Business update
Following the successful acquisition of the 50% stake in the Airolux AG
joint venture, ATG decided to close its manufacturing facility in
Switzerland and transfer manufacturing to the Netherlands, near its global
headquarters in Waalwijk. This move will reduce manufacturing and
logistical costs and improve the organizational footprint. The shut-down of
the manufacturing facility in Switzerland has been carefully managed in
close alignment with Airopack's main customers in order to minimize
disruption to their supply chains.

The new state-of-the-art plant in Waalwijk, the Netherlands, which will
have an initial annual capacity of 80 million pieces of Airopack, will
commence operations in the fourth quarter of 2016. In the second phase, the
manufacturing capacity of the Waalwijk plant can be doubled to 160 million
pieces annually, which is scheduled to take place in the second half of
2017. Necessary changes to the building infrastructure, as well as the
delivery and installation of existing and new machinery, are on track for
both timing and cost. Meanwhile, the first validation runs of the Airopack
assembly lines have been successfully completed and the qualification
process of the new factory is also on track. ATG management has been
strengthened on various levels, and the requisite operational staff has
been hired. The knowledge transfer is nearly completed with the help of a
group of key operational employees from the Swiss manufacturing facility.



ATG was able to secure financing for the roll-out of its patented Airopack
technology thanks to its new strategic partnership with the Apollo Funds.
The Airopack global growth strategy will be supported by the further
development of an authorized filler network ("AFN") business platform. The
AFN platform offers qualified filling companies the opportunity to become
local filling partners for Airopack on a license base.

Outlook
Based on the current development of the customer and sales pipeline, ATG
expects an ongoing positive evolution of Airopack sales and results. Once
the first deliveries from the new facility have been shipped, ATG expects
to be able to announce updates on market launches from both existing and
new customers.

With its current cost structure, ATG estimates that it will reach EBITDA
break-even once production reaches a run rate of 80 million pieces per
year. The further ramp-up to a run rate of 160 million pieces annually is
estimated to only marginally increase ATG's fixed cost base, thus further
increasing future profitability. ATG continues to be confident that its
mid-term goal of a run rate volume of over 700 million pieces annually can
be achieved, compared to a total aerosol market of 15.48 billion annual
units as of the end of 2015 .

Investor day
ATG is pleased to announce it will organize an investor day at its new
plant in Waalwijk, the Netherlands once the production ramp-up has been
completed. The ATG investor day will be hosted by Quint Kelders, CEO of
ATG. Further details will be announced in due time via the ATG website. In
the meantime, please register on newplantvideo@airopackgroup.com to receive
ATG's bi-weekly Airopack new plant video update.

Key figures

^

                                         in TEUR                  in TEUR
                                         HY 2016                  HY 2015
Consolidated income statement
Net sales                                  6'024                    3'189
EBITDA                                   -11'605                   -2'560
EBIT                                     -14'566                   -3'538
Net result                               -16'226                   -4'209
Net result per share in                    -1.15                    -0.31
EUR

Consolidated cash flow                     3'867                    3'515

Consolidated balance sheet
Cash and cash equivalents                  6'784                    4'529
Shareholders' equity                     -15'183  1)               11'780
Balance sheet total                       82'669                   31'058


°

 1) On 7 July 2016, a capital increase of approx. EUR 42 million was
    completed. The pro forma shareholders' equity after completion amounted
    to approx. EUR 27 million.



For more information:

Investors:       Media:
Airopack Technology Group AG     Hill + Knowlton Strategies
Quint Kelders, CEO / Frans van der Vorst, CFO   Frans van der Grint
Zugerstrasse 76b      T: +31 (0) 20 404 4707 / M: + 31 (0) 6 29044053
CH-6340 Baar       E-mail: frans.vandergrint@hkstrategies.com
TF: +31 416 300 800
E-mail: quint.kelders@airopackgroup.com
E-mail: frans.vandervorst@airopackgroup.com
www.airopackgroup.com

^

Airopack Technology Group AG is a leading provider of innovative mechanical
and pressure-controlled dispensing packaging technologies and systems. Its
customers include worldwide manufacturers and suppliers of cosmetics, body
care, pharmaceutical and food products.

The revolutionary and worldwide patented Airopack(R) technology offers a
safe, all-plastic pressurized dispenser that is environmentally and planet
friendly. With deliveries to the world's leading consumer brands, Airopack
Technology Group reached a key milestone in 2015 with respect to commercial
market entry when its technology was embraced by one of the world's leading
consumer brands.

Airopack Technology Group is based in Waalwijk, The Netherlands, home to
its Global Management, Research & Development and Customer Service
functions. Airopack Technology Group is in the process of transferring its
Ready to Fill manufacturing site from Bilten, Switzerland to Waalwijk, the
Netherlands while at the same time substantially expanding its production
capacity. In addition, it runs a Full Service Filling operation in Heist-
op-den-Berg, Belgium.

The shares of the company are listed on the Swiss Reporting Standard of the
SIX Swiss Exchange since 2010. (Ticker: AIRN / ISIN: CH0242606942).
www.airopackgroup.com


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Ende der Ad-hoc-Mitteilung

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   Sprache:        Deutsch                              
   Unternehmen:    Airopack Technology Group AG         
                   Zugerstrasse 76b                     
                   6340 Baar                            
                   Schweiz                              
   Telefon:        +41 417663500                        
   Fax:            +41 417663509                        
   E-Mail:         frans.vandervorst@airopackgroup.com  
   Internet:       www.airopackgroup.com                
   ISIN:           CH0242606942                         
   Börsen:         SIX Swiss Exchange                   
 
 
   Ende der Mitteilung    EQS Group News-Service  
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508135 30.09.2016