Third-quarter report 2015 (January - September 2015) of the EMS Group

- Favourable expansion of business

- Lower net sales in Swiss Francs due to currency effects

- Result increase due to significantly higher sales volumes and efficiency improvements

The EMS Group, with its companies combined in the EMS-CHEMIE HOLDING AG, is globally active in the business areas High Performance Polymers and Specialty Chemicals. In the first 9 months of 2015, sales volumes rose by +8% compared to previous year. Due to currency effects, net sales in Swiss Francs dropped -3.1% below the previous year's figures. In local currencies sales grew by +4.3%. Despite substantial negative currency effects, EMS further increased net operating income (EBIT) above last year's figures.

As expected, global economy, which had been slowing since the beginning of the year, slowed further in the third quarter. Output of cars in the NAFTA region increased and major automotive markets in Europe continued to recover. However, the largest car market China showed a substantial drop and other important automotive markets like Russia and Brazil suffered a sustained slump. In consequence, the global automotive market figures fell back to the previous year's level.

Net sales of the EMS Group amounted to CHF 1,445 million (1,490) which is -3.1% below previous year. Sales volumes increased by +8%. Despite the depressed economy, EMS further expanded new business successfully. The growth offensive launched in response to the decoupling of the Swiss Franc from the Euro was followed through successfully. Substantial negative currency effects, as well as raw-material related sales price reductions, lowered net sales in Swiss Francs. Growth of net sales in local currencies was +4.3%. The NAFTA and European business developed in an especially positive way. Strong growth with high-margin specialty products and simultaneous cost discipline also had a pleasing effect on result and result margin in the third quarter.

For the next months, EMS is expecting an overall sluggish global economy without significant growth impulses. The American and European markets may slow further while emerging markets may stabilise at a lower level.

For the business year 2015, EMS continues to expect net sales slightly below the previous year (due to currency effects) and net operating income (EBIT) in Swiss Francs slightly above the previous year.

Following yesterday's election of Magdalena Martullo to the Swiss National Council Markus Kremmel will join Senior Management of the EMS Group as from January 1, 2016, as an additional member.