DGAP-Ad hoc: Draegerwerk AG & Co. KGaA

DGAP-Adhoc: Drägerwerk AG & Co. KGaA: preliminary result for 2015 and change of dividend policy

Drägerwerk AG & Co. KGaA / Key word(s): Preliminary Results/Dividend

02.02.2016 18:32

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement.

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Ad hoc report in accordance with Sec. 15 of the German Securities Trading Act

Drägerwerk AG & Co. KGaA: preliminary result for 2015 and change of dividend policy

Drägerwerk announces its preliminary, unaudited figures for fiscal year 2015. Net sales rose by 7.2 percent (net of currency effects: 2.9 percent) to EUR 2.61 billion (2014: EUR 2.43 billion). EBIT is expected to have totaled approximately EUR 67 million (2014: EUR 179 million) in 2015, equating to an EBIT margin of 2.6 percent (2014: 7.3 percent). Changes in exchange rates had a negative effect on EBIT over the course of the year. Net sales growth and the EBIT margin for full-year 2015 were within Dräger's most recently forecast range.

The fourth quarter was once again characterized by positive net sales development. Net sales rose by 7.2 percent (net of currency effects: + 4.4 percent) to EUR 825 million (Q4 2014: EUR 770 million). Dräger recorded strong end-of-the-year business in Germany and the regions Asia/Pacific and Middle East, Africa & Others in particular. In the fourth quarter, EBIT fell by around 32 percent to approximately EUR 66 million (Q4 2014: EUR 97 million).

Order intake in the fourth quarter declined by 5.2 percent (net of currency effects: - 6.9 percent) and was unable to keep up with the positive development of net sales, resulting in a year-on-year decrease in orders on hand of approximately EUR 70 million as of the end of the year. Dräger accordingly expects subdued net sales development in the first quarter of 2016.

Net profit contains restructuring expenses for the ongoing efficiency program "Fit for Growth" of EUR 35 million, EUR 30 million of which were recognized in the P&L in the fourth quarter, EUR 21 million thereof for personnel measures in Germany. In 2016 and 2017 Dräger expects further restructuring expenses of approximately EUR 10 million p.a.

On account of the disappointing earnings development and ongoing restructuring, Dräger has decided to adjust its dividend policy and retain the generated earnings to the greatest extent. As a result, the shareholders are also making a contribution to the restructuring and to overcoming the company's tense economic situation.

Dräger will therefore propose a dividend of EUR 0.13 per common share and EUR 0.19 per preferred share to the annual shareholders' meeting on April 27.

Dräger will not make any decisions on the future policy of how to use earnings until earnings development has significantly improved and stabilized. The company plans to make use of share buybacks for the appropriation of earnings in the future.

Dräger will publish a forecast, details on the ongoing efficiency program and the full, audited results for fiscal year 2015 on March 9, 2016.

Drägerwerk AG & Co. KGaA Moislinger Allee 53-55 23558 Lübeck, Deutschland www.draeger.com

Investor Relations: Thomas Fischler Tel. +49 451 882-2685 thomas.fischler@draeger.com

Corporate Communications: Melanie Kamann Tel. +49 451 882-3998 melanie.kamann@draeger.com

Disclaimer Diese Mitteilung enthält Aussagen über die zukünftige Entwicklung des Dräger-Konzerns. Diese zukunftsbezogenen Aussagen basieren auf den gegenwärtigen Erwartungen, Vermutungen und Prognosen des Vorstands sowie den ihm derzeit verfügbaren Informationen und sind nach bestem Wissen und Gewissen zusammengestellt worden. Hinsichtlich solcher zukunftsbezogenen Aussagen kann keine Garantie und keine Haftung für den Eintritt der genannten zukünftigen Entwicklungen und Ergebnisse übernommen werden. Die zukünftigen Entwicklungen und Ergebnisse sind vielmehr abhängig von einer Vielzahl von Faktoren. Sie beinhalten Risiken und Unwägbarkeiten, die sich dem Einfluss des Unternehmens entziehen und beruhen auf Annahmen, die sich möglicherweise als nicht zutreffend erweisen. Unbeschadet rechtlicher Bestimmungen zur Korrektur von Prognosen übernehmen wir keine Verpflichtung, die in dieser Meldung gemachten zukunftsbezogenen Aussagen zu aktualisieren. Alle wichtigen Finanztermine entnehmen Sie bitte unserer Unternehmenswebseite www.draeger.com unter Investoren / Finanzkalender.

02.02.2016 The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de

--------------------------------------------------------------------------- Language: English Company: Drägerwerk AG & Co. KGaA Moislinger Allee 53-55 23542 Lübeck Germany Phone: +49 (0)451 882-0 Fax: +49 (0)451 882-2080 E-mail: info@draeger.com Internet: www.draeger.com ISIN: DE0005550602, DE 000 555 063 6, DE 000 555 065 1, DE 000 555 067 7, DE 000 555 071 9 WKN: 555060, 555063 Vorzüge, 555065 Genussschein A, 555067 Genussschein K, 555071 Genussschein D Indices: TecDAX Listed: Regulated Market in Berlin, Dusseldorf, Frankfurt (Prime Standard), Hamburg, Hanover, Munich; Regulated Unofficial Market in Stuttgart End of Announcement DGAP News-Service ---------------------------------------------------------------------------