DGAP-News: STADA Arzneimittel AG / Key word(s): Quarter Results STADA Arzneimittel AG: STADA with solid business development in the first quarter of 2018 03.05.2018 / 07:30 The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- - STADA had a good start to the year - Both generics and branded products contribute to higher adjusted Group sales - Significant margin improvement in both segments - Transformation programme has already yielded positive results through cost savings in purchase and efficiencies in administration - Double-digit growth of net income - Increase in cash flow and improvement in net working capital STADA key figures: Group Q1/2018 Q1/2017 +/- Reported Group sales EUR558.1 million EUR566.3 million -1% Adjusted Group sales EUR573.4 million EUR552.0 million +4% Reported EBITDA EUR118.6 million EUR108.6 million +9% Adjusted EBITDA EUR118.4 million EUR108.5 million +9% Reported net income EUR56.7 million EUR49.2 million +15% Adjusted net income EUR60.9 million EUR53.3 million +14% Reported earnings per share EUR0.91 EUR0.79 +15% Adjusted earnings per share EUR0.98 EUR0.86 +14% According to Dr. Claudio Albrecht, CEO: "We got off to a good start in financial year 2018. The substantial improvements in profitability in both the Generics and Branded Products segments and the marked increase in net income show that the measures implemented in the transformation process are paying off. Overall, we are on track to meet the growth targets we have set for 2018." Slight decrease in reported Group sales - increase in adjusted Group sales In the reporting period, reported Group sales declined by 1 percent to EUR558.1 million. Sales generated by STADA Vietnam J.V. Co. Ltd. were no longer included. Group sales adjusted for portfolio and currency effects increased by 4 percent to EUR573.4 million. Both segments contributed to this growth. Marked increase in both reported and adjusted EBITDA Reported EBITDA increased by 9 percent to EUR118.6 million in the first quarter of 2018. Adjusted EBITDA grew by 9 percent to EUR118.4 million. Significant increase in both reported and adjusted net income Reported net income increased by 15 percent to EUR56.7 million in the reporting period. Adjusted net income grew by 14 percent to EUR60.9 million. Increase in cash flow - improvement in net working capital Cash flow from operating activities improved to EUR80.6 million in the first three months of 2018 (1-3/2017: EUR59.5 million). Free cash flow increased to EUR51.9 million (1-3/2017: EUR25.8 million). Free cash flow adjusted for payments for significant investments or acquisitions and proceeds from significant disposals increased to EUR61.5 million (1-3/2017: EUR39.7 million). Net working capital improved from EUR678.8 million as of December 31, 2017, to EUR649.9 million as of March 31, 2018. Reduction in net debt As of March 31, 2018, net debt was reduced to EUR1,006.5 million (December 31, 2017: EUR1,054.7 million). The net debt to adjusted EBITDA ratio (LTM; before on a full-year basis/on linear extrapolation) improved in the first quarter of 2018 to 2.3 (1-3/2017: 2.6) including the funding provided by Nidda Healthcare Holding GmbH. STADA key figures: Generics segment Q1/2018 Q1/2017 +/- Reported sales EUR326.8 million EUR325.9 million 0% Adjusted sales EUR332.8 million EUR319.0 million +4% Adjusted EBITDA EUR82.3 million EUR69.4 million +19% Adjusted EBITDA margin 25.2% 21.3% Sales development: Generics Reported sales in the Generics segment in the first quarter of 2018 were more or less on a par with the previous-year quarter at EUR326.8 million. Sales generated by STADA Vietnam J.V. Co. Ltd. were no longer included. Sales adjusted for portfolio and currency effects grew by 4 percent to EUR332.8 million. Overall, the Generics segment accounted for 58.6 percent of Group sales (1-3/2017: 57.5 percent). EBITDA and margin development: Generics Adjusted EBITDA in the Generics segment increased by 19 percent to EUR82.3 million in the first three months of 2018. The adjusted EBITDA margin was 25.2 percent (1-3/2017: 21.3 percent). STADA key figures: Branded Products segment Q1/2018 Q1/2017 +/- Reported sales EUR231.3 million EUR240.4 million -4% Adjusted sales EUR240.6 million EUR233.0 million +3% Adjusted EBITDA EUR63.1 million EUR57.0 million +11% Adjusted EBITDA margin 27.3% 23.7% Sales development: Branded Products Reported sales in the Branded Products segment declined by 4 percent to EUR231.3 million in the first quarter of 2018. Sales adjusted for portfolio and currency effects grew by 3 percent to EUR240.6 million. Overall, the Branded Products segment accounted for 41.4 percent of Group sales (1-3/2017: 42.5 percent). EBITDA and margin development: Branded Products Adjusted EBITDA in the Branded Products segment increased by 11 percent to EUR63.1 million in the first three months of 2018. The adjusted EBITDA margin in the Branded Products segment was 27.3 percent (1-3/2017: 23.7 percent). STADA reconciliation of special items in the first quarter of 2018 (EUR million1) Report- Impairme- Effects from Adjust- ed nt/write- purchase ed first -ups on price first quarte- non-curr- allocations quarte- r of ent and product r of 2018 assets acquisitions2 2018 Earnings before interest, taxes, 118.6 -- -0.2 118.4 depreciation and amortization (EBITDA) Balance from 30.4 -1.8 -3.3 25.3 depreciation/amortization and impairment/write-ups for intangible assets (including goodwill), property, plant and equipment and financial assets Financial income and expenses -8.1 -- -- -8.1 Income taxes 22.4 0.5 0.4 23.3 Result attributable to 1.0 -- -0.1 0.9 non-controlling shareholders Result attributable to the 56.7 1.3 2.9 60.9 shareholders of STADA Arzneimittel AG (net income) 1 Due to the presentation in EUR million, deviations may appear in the tables due to rounding. 2 Concerns additional depreciation/amortization and other valuation effects due to purchase price allocations and significant product acquisitions compared with the 2013 financial year as the base level. Contact: STADA Arzneimittel AG / Investor Relations / Leslie Iltgen / Stadastraße 2-18 / 61118 Bad Vilbel - Germany Tel.: +49 (0) 6101 603-173 / Fax: +49 (0) 6101 603-215 / E-mail: [email protected] Or visit us in the Internet at www.stada.com. --------------------------------------------------------------------------- 03.05.2018 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de --------------------------------------------------------------------------- Language: English Company: STADA Arzneimittel AG Stadastraße 2-18 61118 Bad Vilbel Germany Phone: +49 (0)6101 603- 113 Fax: +49 (0)6101 603- 506 E-mail: [email protected] Internet: www.stada.de ISIN: DE0007251803, , WKN: 725180, , Indices: MDAX Listed: Regulated Market in Dusseldorf, Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange End of News DGAP News Service --------------------------------------------------------------------------- 681731 03.05.2018