RATIONAL AG / key word(s): forecast change, dividend
Landsberg am Lech, 10 March 2020

After a successful year 2019, Rational AG enters 2020 with great caution

Rational AG confirms provisional figures for fiscal year 2019 and starts 2020 with a very cautious forecast due to corona development

Rational AG confirms the provisional sales revenues and EBIT figures for the successful fiscal year 2019 reported in February. Sales revenues amounted to 844 million euros, 8 percent up on the previous year. EBIT was 223 million euros, representing an EBIT margin of 26 percent.

2020 forecast adjusted: low single-digit sales revenue growth and an EBIT margin of 20 to 25 percent expected - medium-term forecast unchanged

Due to the increasing economic uncertainties arising from the global spread of the coronavirus, Rational enters 2020 with great caution. The negative effects of the coronavirus on the economy and the food service sector can now also be clearly felt beyond China. Economic forecasts have been scaled back. Trade fairs have been cancelled or postponed, public cooking events have been banned in some countries or have poor attendance rates due to mobility restrictions or individual precautions. Consequently, many of Rational's classic sales activities are temporarily unable to go ahead as planned.

In view of these negative effects, management has reviewed the original forecast issued at the end of February and now only expects sales volume and revenues to grow by a percentage in the low single digits compared with the previous year.

In the medium to long term, management anticipates that market conditions will normalise as the effects of the coronavirus tail off, and that sales revenue growth will resume in the high single-digit percentage range. The reasons are the continued availability of high untapped market potential, the close association with the basic human need for food and the superiority of the Rational products and services, which has been attested by customers worldwide. For these reasons, Rational will continue its growth initiatives, continue to make expansion investments and invest in the quality of its workforce in 2020. Due to the anticipated negative sales revenue effect of the coronavirus, it is therefore expected that operating expenses will rise faster than sales revenues. Management expects this to result in a drop in EBIT in the high single-digit to low double-digit percentage range. Consequently, the EBIT margin for fiscal 2020 is forecast to range between 20 percent and 25 percent. This wide range reflects the current deep uncertainties. For the medium term, management assumes that the EBIT margin will return to around 26 percent.

Dividend of 10.70 euros per share proposed

The Executive Board and Supervisory Board of Rational AG will propose to the general meeting of shareholders on 6 May 2020 to distribute a dividend of 10.70 euros per share (2018: 9.50 euros per share). The company thus increases the dividend for the eleventh year in a row.

Details of the forecast for fiscal 2020 will be published at the annual results press conference on 24 March 2020 (the originally planned date was 17 March 2020). In addition, a telephone conference will be held in English in the afternoon of the same day.

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. Founded in 1973, the company employs around 2,200 people, over 1,200 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 MDAX.

The company's principal objective is to offer maximum customer benefit at all times. Internally, RATIONAL is committed to the principle of sustainability, which is expressed in its 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.