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Heinzel Group continues on a successful course

Sales revenues up 3% to EUR 1.8 billion in 2017
Conversion of PM10 in Laakirchen to containerboard successfully completed
EBIT (EUR 74 million) and net income (EUR 55 million) slightly below good prior-year level
Investment volume of 2018 will exceed the EUR 107 million of 2017

Heinzel Group increased its sales revenues by roughly 3% compared with the previous year to EUR 1,816.5 million in 2017. All companies of the two business areas, Trading and Industrial, recorded increases in both sales revenues and earnings, which were significant in some cases - with the exception of Laakirchen Papier. This is attributable to the three-month downtime of PM10 as part of its conversion to one of the most modern production facilities for containerboard in Europe, which cost EUR 110 million. Since its commissioning at the end of October, it has produced more than 1,000 metric tons of environmentally friendly packaging paper per day from recycled paper.

Due to the negative result of Laakirchen Papier (EUR -8.0 million), the operating result (EBIT) of Heinzel Group, at EUR 73.6 million, was lower than the prior-year figure (EUR 78.6 million), which had, however, included non-operating one-off effects of EUR 4.3 million. At EUR 55.0 million, net income also fell slightly short of the good prior-year level of EUR 57.6 million.

"We are fully satisfied with the results of the year 2017. Our main investment decision of the past years, entering into the production of containerboard, has proven to be absolutely right, also in terms of timing. In combination with our other investments, we have thus created an essential cornerstone for our clear growth course," said Kurt Maier, CEO of Heinzel Group.

Sales revenues in Trading Business continue to grow

Sales revenues of the Trading Business Area rose by roughly 4% to EUR 1,333.6 million in 2017. Due to favorable market prices in particular, heinzelsales and its international network generated record profits. The consistent implementation of the diversification strategy of Europapier and an increase in the volume of recycled paper at Bunzl & Biach by 44,000 metric tons caused the result of the entire Trading segment to improve further.

Setting the course in the Industrial Business Area

The good market price situation for pulp and packaging papers led to a slight increase in sales revenues to EUR 634.7 million in the Industrial Business Area in 2017, although production declined by roughly 57,000 metric tons due to downtime and conversion measures. In addition to the conversion in Laakirchen, a capacity expansion was also implemented at the pulp mill in Pöls. Estonian Cell and Raubling Papier produced at record level in the past financial year.

Positive Outlook

Heinzel Group expects the good demand to continue in both the pulp and paper markets in the current financial year. Demand should continue to be strong for packaging paper and good for graphic papers due to the shutdown of capacity. Against this backdrop, the group will continue to pursue its growth course in 2018. In addition the further expansion of trading activities directed at new markets and product segments, the construction of the PM3 in Pöls is another major project on the agenda.

More detailed information regarding the 2017 financial year is available from the Heinzel Group annual report, which can be found at www.heinzel.com/en/2017

HEINZEL GROUP

Heinzel Group, which is united under the Heinzel Holding umbrella, is one of the biggest producers of market pulp and packaging papers in Central and Eastern Europe with its industrial locations Zellstoff Pöls, Laakirchen Papier (both Austria), Raubling Papier (Germany) and Estonian Cell (Estonia). Magazine paper rounds off the group's range. Its trade area includes Wilfried Heinzel AG, a globally active pulp, paper and board trading company, and Europapier International AG, the leading paper wholesale company in Central and Eastern Europe. In addition, Bunzl & Biach GmbH is the largest and most important recycled paper company in Austria and a top wholesaler in Central and Eastern Europe. Heinzel Group's successful growth is based on meeting the highest customer demands with regard to quality and efficiency.

Source: Heinzel Paper

 
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