Constantia Flexibles Group GmbH: Constantia Flexibles with strong sales and earnings growth, positive outlook

Wien (pta018/20.08.2013/10:55 UTC+2) - Sales up by 22% to EUR 803,4 million, EBITDA by 18% to EUR 113.0 million in the first half-year 2013
- CEO Thomas Unger, "In the first half year we managed to expand our presence in the core markets USA, Mexico and India."
- Outlook 2013: Further positive business development

Constantia Flexibles, one of the leading flexible packaging groups posted record results in the first six months of the current business year. Sales could be increased due to higher volumes sold in Western Europe, North America and the emerging countries from organic growth by 5% and by acquisitions by 17%. Total sales was raised by 22% in the half year comparison to EUR 803.4 million (previous year EUR 659.4 million). The operative result before interest, taxes and depreciation (EBITDA) was improved by 18% to EUR 113.0 million and is EUR 17.6 million above the previous year (EUR 95.4 million). EBIT increased by 12% to EUR 61.8 million (EUR 54.8 million).

Thomas Unger, CEO of Constantia Flexibles explains the positive development to date, "Our business model is based on daily consumer demand with sustainable growth potentials in established and emerging markets. In the first half of this year we succeeded to increase our presence in the core markets USA, Mexico and India. Also earnings could be raised."

Segment Food
While Western Europe had stable market development, Eastern Europe and the emerging countries in Asia and Latin America with their growing middle classes showed growth. Catering for this development, Constantia Flexibles has secured relevant market access and growth potential by acquisitions in India and Mexico, which are among the fastest growing markets in flexible packaging.

Sales in the half-year comparison increased by 28% to EUR 525.3 million (EUR 410.3 million). 21% came from the acquisitions Globalpack and Parikh Packaging, 7% were organic growth due to higher volumes sold in Western Europe and emerging countries. EBIT could be raised by 15% to EUR 33.2 million (EUR 28.8 million).

Segment Pharma
The pharma market continues to be characterized by the competition between original and generic manufacturers. The use of so-called "drug delivery technologies", which offer new delivery forms, opens up new application areas for packaging development. Sales could be increased due to higher volumes sold by 3% to EUR 143.5 million (EUR 139.6 million), EBIT rose by 11% to EUR 17.2 milion (EUR 15.5 million).

Segment Labels
Also the labels business showed satisfactory development in the period just ended. The business with in-mould labels continues to grow dynamically, in the brewery industry new customers could be won in the Middle East and Africa. With the purchase of the Spear Group, one of the leaders for pressure-sensitive labels, the position in the beverage industry could be strengthened significantly. Sales increased by 18% to EUR 172.8 million (EUR 146.8 million), 17% came from the Spear acquisition, 1% were due to organic growth. EBIT rose by 8% to EUR 20.6 million (EUR 19.1 million). Market and business development There are increasing signs that the Euro zone will be characterized by a positive economic development in the second half of the year. Also in the US a sustained economic recovery is forecast for fall. The emerging markets with lower sovereign debt than the industrialized countries and newly emerging middle classes continue to be the global growth drivers.

Outlook 2013
In the past year, the basis for further successful business activity was laid with a new organizational structure and a new management. In 2013 the emphasis lies on strengthening market presence in growth regions and further Group integration. Thus far, the financial year 2013 has developed well, and the outlook for the rest of the year is also positive.

Constantia Flexibles Group GmbH

Figures in Eur million	I-VI 2012**	I-VI 2013**	Change	2012**
Sales	659.4	803.4	+22%	1,313.9
EBITDA	95.4	113.0	+18%	187.6
EBITDA margin	14.5%	14.1%	-	14.3%
EBIT	54.8	61.8	+12%	106.4
EBIT margin	8.3%	7.7%	-	8.1%
Employees (reporting date)	5,461	8,317	+52%	5,452
FTE (reporting date)*	5,339	8,198	+54%	5,356

* Full-time Equivalents
** Results adjusted for one-off effects (net effects of one-off expense and income) in the amount of Eur 1.6 m (I-VI 2012),
Eur 3.3 m (I-VI 2013) and Eur 5.2 m (2012)

Constantia Flexibles is a leading flexible packaging group supplying international customers in the food, pet food, pharmaceutical and beverage industries. More than 8,000 employees in over 50 group companies in more than 20 countries offer innovative packaging solutions on a global basis.

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