Gerresheimer expects around 9% growth in 2016

Duesseldorf (ots) -

- Cross reference: The full press release including tables is
available at http://www.presseportal.de/dokumente -

- Revenues in financial year 2015 up 6.8% to EUR 1,377.2m
- Adjusted EBITDA climbs to EUR 277.9m
- Adjusted earnings per share rise 18.0% to EUR 3.41
- Proposed dividend of EUR 0.85 per share (2014: EUR 0.75 per
share)
- Centor acquisition, sale of glass tubing business and
refinancing successfully completed
- Approximately 9% revenue growth expected in 2016, with 4% to 5%
on organic basis
- Adjusted EBITDA expected for 2016 at approximately EUR 320m

Gerresheimer AG, one of the leading partners to the pharma and
healthcare industry worldwide, brought financial year 2015 to a
successful close and sees strong growth prospects for the years
ahead. "2015 was not only a successful but also an important year for
us. In Centor, we successfully acquired a market-leading and
profitable company in the USA. Similarly important was the sale of
the glass tubing production activities, with which we further
sharpened our focus on pharmaceutical packaging and made our business
less capital-intensive. We are successfully implementing our
strategy, and I look forward with great confidence to the years
ahead," said Uwe Röhrhoff, CEO of Gerresheimer AG.

Pharmaceutical packaging manufacturer Gerresheimer boosted
revenues by 6.8% to EUR 1,377.2m in financial year 2015 (December 1,
2014 to November 30, 2015). On an organic basis, revenues increased
by 1.5%, within the 1% to 3% target corridor. Notable revenue growth
was generated with pharmaceutical plastic packaging as well as
products for safe and simple drug delivery such as insulin pens,
skin-prick aids for diabetics and asthma inhalers. Business with
pharmaceutical primary packaging glass picked up in the course of the
year after a slow start in the USA. The market for premium cosmetic
glass packaging developed well, largely driven by the trend toward
elaborate design and the associated finishing processes. Revenues
with laboratory glassware, which is primarily sold in the USA,
increased solely as a result of exchange rate changes. At constant
exchange rates revenues showed a slight decrease.

Adjusted EBITDA went up in financial year 2015 to EUR 277.9m, or
EUR 271.9m on a constant exchange rate basis. Excluding the Centor
acquisition, adjusted EBITDA was EUR 262.4m, squarely within the
target corridor of EUR 255m to EUR 265m. Compared with a prior-year
figure of 19.6%, the adjusted EBITDA margin was above the 20% mark,
at 20.2%. Backed by improved operating earnings power and the
proceeds from the sale of the glass tubing business, net income grew
by 54.6% to EUR 112.7m. Adjusted earnings per share rose 18.0% to EUR
3.41 compared with a 2014 figure of EUR 2.89.

Gerresheimer successfully completed two key transactions in
financial year 2015. With the acquisition of Centor, the Company
realized its long-term goal of occupying a stronger presence in the
plastic pharmaceutical packaging segment in the USA. Centor is the
market leader in plastic containers used by American pharmacies to
package prescription tablets. In addition, Gerresheimer sold its
glass tubing production activities, entered into a long-term supply
contract for this intermediary product and established a joint
venture for future innovation in the pharmaceutical glass segment.
Prior to the two transactions, the overall financing arrangement from
2011 was replaced in June 2015 with a EUR 450m revolving credit
facility. The Centor acquisition was primarily funded out of the
successful EUR 425m debt issue in November 2015. Leverage-the ratio
of net financial debt to adjusted EBITDA-stood at 2.9 as of the end
of November 2015 compared with a prior-year figure of 1.7. The
Company aims to bring leverage back down as soon as possible.

Gerresheimer's capital expenditure in financial year 2015 was EUR
125.8m (2014: EUR 126.6m), or 9.0% of revenues at constant exchange
rates and excluding Centor. The target for capital expenditure was 9%
to 10% of revenues. Gerresheimer is further expanding production
capacity for drug delivery systems such as insulin pens and asthma
inhalers, especially in the USA and Czech Republic. Late summer 2015
brought an expansion and improvements at the moulded glass plant in
Chicago, USA. The global program of modernizing and standardizing
injection vial production machinery was successfully continued. A new
production building for injection vials and ampoules was completed in
India. Production there is set to start up at the end of 2016.

Outlook

Gerresheimer's expectations for financial year 2016 are set out in
the following, in each case based on constant exchange rates. For the
US dollar-which has the largest currency impact on the Group currency
and will now account for about a third of Group revenues in
2016-Gerresheimer has assumed an exchange rate of approximately USD
1.12 to EUR 1.00.

In financial year 2016, the Company anticipates Group revenues of
around EUR 1.5bn (plus or minus EUR 25m) on a constant exchange rate
basis. The Group revenues of EUR 1.5bn correspond to revenue growth
of about 9% at constant exchange rates compared with revenues in
financial year 2015, and organic revenue growth of between 4% and 5%.
Gerresheimer expects adjusted EBITDA to increase to approximately EUR
320m (plus or minus EUR 10m) in financial year 2016. Capital
expenditure in financial year 2016 is anticipated to be no more than
roughly 8% of revenues at constant exchange rates, and thus at the
lower end of the previous guidance for financial years 2016 to 2018
of between 8.0% and 9.0% of revenues at constant exchange rates.

Major steps were taken in 2015 to make the business less capital
intensive. With the sale of the glass tubing business and the
permanent closure of the moulded glass plant in Millville
Gerresheimer significantly reduced the number of furnaces operated by
a total of eight to thirteen. At the same time, the Company
anticipates a decrease in the ratio of net working capital to
revenues because, among other factors, buying finished glass tubes in
line with requirements following the sale of the glass tubing
business means that less inventory has to be held overall. Average
net working capital is forecast to improve in 2016 by about two
percentage points to around 17% of revenues at constant exchange
rates.

In addition, the Company confirms its indication for the financial
years 2016 to 2018, in each case stated at constant exchange rates
and assuming a US dollar exchange rate of USD 1.12 to EUR 1.00.
Gerresheimer is aiming for average annual organic revenue growth of
4% to 5% for the period from 2016 to 2018. For the adjusted EBITDA
margin, the Group has set a target of approximately 22% for financial
year 2018. In order to meet these targets, Gerresheimer will in all
probability require significantly lower annual capital expenditure of
the order of only about 8% of revenues at constant exchange rates.

Dividend

At the Annual General Meeting on April 28, 2016, the Management
Board and Supervisory Board will be jointly proposing that a dividend
of EUR 0.85 per share be paid out for financial year 2015. This
represents an increase of 13% against the prior-year dividend. The
dividend ratio amounts to 25% of adjusted net income after
non-controlling interests.

The Annual Report is available here:
www.gerresheimer.com/en/investor-relations/reports

Pressekontakt:
Gerresheimer AG
Klaus-Bungert-Strasse 4
40468 Düsseldorf
Germany

Jens Kürten
Group Senior Director Communication & Marketing
Phone +49 211 6181-250
Telefax +49 211 6181-241
E-Mail j.kuerten@gerresheimer.com
Internet www.gerresheimer.com