Annual Results 1995 for the EMS Group

With its companies combined within EMS-CHEMIE HOLDING AG, and operating world-wide with an unchanged scope of consolidation in the fields of performance
polymers, fine chemicals and engineering, the EMS Group was able to boost net
sales by 7,8% to 924 million Swiss francs (857) and net income after taxes by 41,8% to 204 million Swiss francs (144), whereby this increase in net income is the result of a further improvement of operating income (+ 4,3%) and, in particular, of higher finance income (+ 141,4%).

Although the EMS-Group - which exports more than 90% of its products - experienced 1995 as its best year ever, the unexpectedly substantial strengthening
of the Swiss franc as well as the general economic downturn in Europe in the
second half of the year and the significantly higher raw material prices had quite
some impact on Group results.

In spite of these unfavorable market conditions, the excellent cost discipline, the
enduring efforts to concentrate on high-yield products as well as the measures
successfully applied to the management of cash assets generated a very
satisfactory overall result. Net income after taxes amounted to 20,6% and cash flow to 25,2% of total income from production. Yield per bearer share was hence
boosted from 227.35 Swiss francs to 325.40 Swiss francs. Return on equity
amounted to 21,4% in 1995, with an average of 20,3% over the past 4 years.
Although EMS bought back own shares with a total value of 624 million Swiss francs in 1993 and 1994, and despite the fact that in 1995 the sum of 94 million Swiss francs was paid out to shareholders as par value reduction and dividend, a further equity increase was experienced, from 847 million to 952 million Swiss francs, corresponding to a high 65,0% of the balance-sheet total.
The earning capacity of the Group is high, its financial health robust.