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Course of business

Course of business 2016

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 2016, sales volumes increased by 6.7% compared to previous year. Net sales rose by 4.1% and net operating income (EBIT) by 16.9%. New record levels for net sales, net operating income and net result were achieved.

Compared to previous year, consolidated net sales grew by 4.1% to reach CHF 1,983 million (1,905). In a moderately positive global economy, EMS was able to continually expand business with innovative specialty products. Pleasing growth was achieved in all regions and customer markets. Sales volumes were increased by a total of 6.7% compared to previous year.

Net operating income (EBIT) closed at CHF 548 million (469) which is 16.9% above previous year. The operational cash flow (EBITDA) rose by 15.1% to CHF 604 million (525). The EBIT margin was 27.6% (24.6%), the EBITDA margin 30.5% (27.5%). Strong growth with high-margin specialty products and simultaneous efficiency improvements had a positive effect on both result and result margin.

Net income closed at CHF 456 million (383) which is 19.0% above previous year. Earnings per share increased to CHF 19.19 (16.09).

At the Annual General Meeting 2017, the Board of Directors intends to propose distribution of an ordinary dividend of CHF 13.00 (11.00) per share and an additional extraordinary dividend of CHF 4.00 (4.00) per share for the business year 2016. This means that a total of CHF 17.00 (15.00) per share would be distributed.

For the business year 2017, EMS is expecting a slower world economy with fluctuating instability. Political events may affect development of the world economy, also in the short term. Additionally, higher oil prices are driving inflation expectations and will result in an excessive increase in raw material and sales prices.

EMS is confident with regard to development of its own business. The successful strategy of worldwide growth with specialty products in the area of high-performance polymers will be continued. Focus will be put on exploiting global market potential with new, innovative products and applications as well as on strengthening market positions. Sales price increases will secure result, even with strongly increasing raw material prices.

For 2017, EMS expects net sales and net operating income (EBIT) slightly above the previous year.