Press release

Rational AG surpasses growth expectations in the first half of 2018

- 11 percent sales revenue growth; currency-adjusted +14 percent

- Currency-adjusted EBIT margin of 26 percent

- Outlook for sales revenue growth in 2018 raised to 10 to 12 percent

After a good start in the first quarter of 2018, Rational AG's successful business performance continued in the second quarter, with sales revenues up by 17 percent. In total, sales revenues amounted to 367.3 million euros in the first six months (2017: 331.1 million euros), which is an increase of 11 percent compared to the previous year. Adjusted for negative currency effects, sales revenues were up 14 percent on the previous year.

Worldwide growth
Rational was able to increase its sales volume in all regions of the world in the first six months. North America was the main growth market with an increase of 17 percent. This figure includes a big order for a chain customer, delivery of which was largely completed in the second quarter. Sales revenues increased by 12 percent in the home market of Germany. Growth of 11 percent was achieved in the rest of Europe. Sales revenues in Asia rose by 12 percent. Sales revenues in Latin America were 2 percent down on last year's figure, but 6 percent above it after exchange rate adjustments. Sales revenues in the "Rest of the world" region increased by 7 percent in the first half of 2018.

Positive performance for both segments
In the first half of the year, the RATIONAL segment increased its sales revenues by 10 percent to 338.9 million euros (2017: 307.2 million euros). Segment earnings amounted to 86.9 million euros, 7 percent up on the previous year (2017: 81.2 million euros). Sales revenues in the Frima segment amounted to 28.5 million euros (2017: 24.7 million euros), 15 percent more than in the previous year. Segment earnings amounted to 4.0 million euros, 52 percent above the previous year's figure (2017: 2.6 million euros).

Gross profit up 8 percent year on year
In the first half of 2018, RATIONAL generated a gross profit of 218.5 million euros (2017: 202.5 million euros), an increase of 8 percent compared to the previous year. The gross margin was
60 percent, a slight decrease over the previous year (2017: 61 percent). The decline is mainly attributable to negative currency effects. In addition, rising prices of raw materials and above-average growth for smaller appliance sizes reduced the gross margin.

Currency-adjusted EBIT margin of 26 percent
Earnings before interest and taxes (EBIT) in the first six months were 90.9 million euros,
8 percent up on the previous year (2017: 83.8 million euros). The ratio of EBIT to sales revenues (EBIT margin) was just below 25 percent (2017: 25 percent). Negative currency effects and translation effects on foreign currency positions reduced the EBIT margin. Adjusted for exchange rate influences, the EBIT margin was around 26 percent and hence at the level of the previous year.

Operating cash flow of 55 million euros - 73 percent equity ratio
In the first half of 2018, Rational's operating cash flow amounted to 55.0 million euros
(2017: 44.9 million euros). At 73 percent on 30 June 2018 (2017: 73 percent), the equity ratio was at its customary high level.

206 new employees in the first six months
206 new employees were added in the first six months of 2018, almost half of them in Germany. Most of the new positions are in sales and sales-related functions.

Outlook for sales revenue growth raised to 10 to 12 percent
"The large majority of our customers are so satisfied with the products and services that they would be happy to purchase them again at any time and also recommend them to friends and colleagues. This assessment was confirmed again in the latest customer satisfaction survey in 2018," says Dr Peter Stadelmann, Chief Executive Officer of Rational AG.

The Executive Board of RATIONAL AG also assesses the prospects for the second half of the year as positive. "That's why we are raising our sales revenue growth target for fiscal year 2018 to
10 to 12 percent. We are sticking to our earnings outlook that the EBIT margin will be between
26 percent and 27 percent," states Dr Stadelmann. Further exchange rate trends will be a crucial factor here. The company still assumes that sales revenues will grow in the high single-digit range in the coming years.

Contact:
RATIONAL Aktiengesellschaft
Stefan Arnold / Head of Investor Relations
Tel. +49 (0)8191 327-2209
Fax +49 (0)8191 327-72 2209
E-mail: [email protected]
www.rational-online.com

Editorial note:

The RATIONAL Group is the global market and technology leader for thermal preparation of food in professional kitchens. The company, founded in 1973, employs around 2,000 people, over 1,000 of whom are in Germany. RATIONAL was floated in the Prime Standard of the German stock market in 2000 and is currently represented in the SDAX.

The company's principal objective is to offer maximum customer benefit at all times. Rational is committed to the principle of sustainability, which is expressed in its corporate policies on environmental protection, leadership, job security and social responsibility. Numerous international awards bear witness to the high quality of the work done by RATIONAL's employees year for year.