First-quarter report 2015 (January - March 2015) of the EMS Group

EMS Group:

- Successful course of business

- Investments of CHF 35 million for capacity expansion in Switzerland

Course of business January - March 2015

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 three months of 2015 sales volumes rose by 8%. Net sales in local currencies increased by 3.3% compared to the previous year. In Swiss Francs net sales amounted to CHF 479 million and remained 3.5% below previous year.

As expected, the economy in the main markets China and NAFTA developed in a positive way although with decreasing growth rates. Western Europe stagnated while Russia suffered further setbacks. Worldwide car production showed low growth of around 1%.

Currencies showed significant changes during the first quarter of 2015. The Swiss Franc in particular showed major overvaluation which had a hampering effect on development of EMS' net sales in Swiss Francs. The Euro, now significantly weaker against the US Dollar (and the Swiss Franc), will probably only in the coming months provide a positive stimulus for the European export industry.

EMS counteracts the negative currency effects with a focussed growth strategy on specialties in the area of high-performance polymers. Innovative products and solutions will be quickly launched onto world markets and global market positions continually strengthened. A growth offensive should ensure additional business and the Chinese market organisation will be further expanded. Implementation of efficiency programmes already introduced last year will now be accelerated and intensified with additional measures.