Significant increase in operating profit at Haniel Group

Overall, Haniel’s Management Board expects the Group’s revenue, adjusted for business acquisitions and disposals and currency translation effects, to be at the same level in financial year 2016 as in the previous year. This forecast assumes that a decrease in revenue at ELG can be offset by higher revenue at all other divisions. Operating profit is expected to experience a significant increase, driven by higher operating profit at every division.

Both profit before taxes and profit after taxes are also expected to increase sharply. This development is also reflected in the value-oriented KPIs return on capital employed and Haniel value added. Haniel’s Management Board expects the 2016 return to be higher than in 2015 and the costs of capital to be virtually the same. This will result in a slight increase in Haniel value added. This assumption also results in a slight increase in return on capital employed. Haniel cash flow will also increase slightly as compared to 2015 thanks to the positive trend.

For the existing business, Haniel’s Management Board plans capital expenditure for property, plant and equipment and intangible assets to be up slightly year on year. Besides replacement investments this increase will be especially driven by the further modernisation of the IT systems of CWS-boco and TAKKT. At the level of the Haniel Holding Company – as well as at the divisions – the focus will continue to remain on acquisition activities. This will have a material influence on the volume of capital expenditure, as it had in 2015.

Haniel’s Management Board is confident that the expected revenue and earnings trend for the Haniel Group will deviate positively from the presented development with the acquisition of new divisions or supplementary acquisitions by the existing divisions.