Unterneukirchen (Germany), May 15, 2013. SKW Metallurgie, a global specialty chemicals group, got off to a solid start in fiscal year 2013 in view of the continued economic uncertainties in the steel industry, which is key for the Group. In particular the substantial downturn in steel production in Europe (EU: -5.4%), where the market is negatively impacted by the ongoing financial and debt crisis, and in the USA (-7.6%) in the first quarter of 2013 mean that consolidated revenues have fallen substantially compared to the same period of the previous year from € 113.2 million to € 87.8 million. In spite of this, however, the SKW Metallurgie Group recorded a solid EBITDA of € 5.0 million (Q1 2012: € 6.0 million). The EBITDA margin has improved compared to the same period of the previous year from 5.3% to 5.7%. Profits after taxes are also significantly higher.

In view of the solid start to the fiscal year and assuming that activities are to recover during the course of 2013, the Executive Board is forecasting moderate revenue and sales growth and believes that there is notable earnings potential due to the increasing contributions to earnings from the new plants.

“Despite the production downturn in the steel industry, we have succeeded in recording pleasing profitability. As forecast, the improvements in earnings from the new plants are having an increasingly positive impact,” commented the SKW Metallurgie Group’s CEO, Ines Kolmsee.

Gross margin increased to 30.6%  

The Group increased its gross margin, defined as the sum of total operating revenue and material costs to revenues, substantially year-on-year to 30.6% (Q1 2012: 27.7%) through, inter alia, further increases in production efficiency, and a margin-optimized product mix. As a result of a significantly lower tax rate, profits after taxes increased from € 0.1 million in Q1 2012 to € 0.7 million. Earnings per share totaled € 0.19 (Q1-2012: € 0.13).

Investment phase completed

As announced, the Group’s most recent phase of expansion and investment has been completed. As a result, in 2013 the SKW Metallurgie Group is to focus, in particular, on maintenance investments. Accordingly, the net cash used in investing activities in the period under review of € 1.6 million is clearly below the comparable figure in Q1 2012 of € 4.6 million. The cash flow from operating activities (net cash flow) improved substantially from € 0.6 million in Q1 2012 to € 1.4 million. The quality of the balance sheet also improved once again compared to the end of 2012. For instance, the equity ratio increased to 41.0% (December 31, 2012: 40.2%). Net financial debt fell slightly to € 73.6 million (December 31, 2012: € 73.9 million). Correspondingly, gearing fell from 0.61 to 0.59.

Confirmation of the cautiously optimistic outlook for 2013

The economic uncertainties, which could be seen in the first few months of 2013 and which had increased once more, as well as what are mostly still unresolved problems in the sovereign debt crisis in key European countries mean that it is still difficult to forecast business. A large number of experts believe that there are increasingly high risks as to whether the anticipated recovery in the global economy will actually occur in the second half of 2013, which would also have major consequences for the forecast from the World Steel Association industry analysts for steel production. Accordingly, The SKW Metallurgie Executive Board believes that there will be no notable impetus from Europe in the current fiscal year. A moderate increase is forecast for the North American steel market for the full year, despite the weaker start to the year. In addition, above-average growth in emerging nations might also have a positive effect. However, in Brazil, as announced and irrespective of macroeconomic developments, competition has become more intense for key sales markets for the SKW Metallurgie Group.

On the whole, in view of the solid start to fiscal year, the Executive Board is forecasting moderate revenue and sales growth – assuming that economic activities recover during the course of the year. Earnings potential is seen in growing earnings contributions from the new plants in Bhutan, Russia and Sweden and from the plant expansion in Brazil. In terms of the balance sheet, in 2013 as a result of the preliminary conclusion of the group’s expansion and corresponding lower capital expenditure, the Executive Board is forecasting a positive free cash flow, which might, inter alia, lead to a further reduction in net financial debt.

The report on Q1 2013 and further information on the Group can be found on this website.

Contact

SKW Stahl-Metallurgie Holding AG
Christian Schunck
Head of IR and Corporate Communication
Rathausplatz 11
84579 Unterneukirchen
Germany

Telephone IR/Press: +49 89 5998923-22
Fax: +49 89 5998923-29
E-mail: schunck@skw-steel.com
Internet: www.skw-steel.com

About SKW Stahl-Metallurgie Holding AG

The SKW Metallurgie Group is the global market leader for chemical additives for hot metal desulphurization, and for cored wire used in secondary metallurgy. The Group’s products enable steel-makers to efficiently manufacture high-quality steel products. Clients include the world’s leading companies in the steel industry. The SKW Metallurgie Group has more than 50 years of metallurgical know how, and currently operates in more than 40 countries. What is more, the Group is a leading supplier of Quab specialty chemicals, which are mainly used in the global production of industrial starch for the paper industry. The company’s operating business is broken down into the two core segments “Cored Wire and “Powder and Granules”, and the “Other” segment. The SKW Metallurgie Group is headquartered in Germany with production facilities in France, the US (6), Canada, Mexico, Brazil, South Korea, Sweden, Bhutan, Russia the Peoples’ Republic of China (2) and India (2 via joint ventures).

Shares of SKW Stahl-Metallurgie Holding AG have been listed in Frankfurt Stock Exchange’s Prime Standard since December 1, 2006 with ISIN DE000SKWM013 (since August 15, 2011: new ISIN DE000SKWM021), and have been included in the SDAX index from June 23, 2008.

DISCLAIMER

This press release contains statements on future developments that are based on currently available information and involve risks and uncertainties that could cause the actual results to differ from these forward-looking statements. These risks and uncertainties include, for example, unpredictable changes in political and economic conditions, particularly in the steel and paper industry, the competitive situation, interest and currency risks, technological development as well as other risks and unexpected circumstances. SKW Stahl-Metallurgie Holding AG and its Group companies accept no obligation to update such forward-looking statements.

KPIs for SKW Stahl-Metallurgie Holding AG for Q1 (in € million)

Taking the changes under IAS 19 into account, figures for 2012 adjusted accordingly

1)    Based on 6,544,930 shares

2)    Net financial debt to equity (incl. non-controlling interests)

Unterneukirchen (Germany), March 22, 2013. The global specialty chemicals group SKW Metallurgie recorded solid results in fiscal year 2012 despite difficult underlying macroeconomic conditions and start-up costs for its new plants. Steel production (outside China) is by far the most important indicator for the SKW Metallurgie Group’s business development, and here in particular the quantities produced in the EU, the USA and Brazil. All three regions recorded what was, in some cases, substantially negative development in the second half of the year; in Europe in particular this was the case for the entire year.

As a result, the SKW Metallurgie Group was not quite able to reach the previous year’s figures with consolidated revenues of € 404.6 million in 2012 (previous year: € 428.9 million). This also impacted EBITDA, which totaled € 20.8 million (2011: € 31.7 million; adjusted for non-cash one-off factors: € 22.9 million).

The Executive and Supervisory Boards intend to propose to the Annual General Meeting on June 11, 2013 the disbursement of a dividend in the amount of € 0.50 per dividend-entitled share, unchanged y-on-y in absolute terms.

Irrespective of the continued high level of economic uncertainty, the Executive Board is fundamentally optimistic, assuming a stable economic development, and believes that revenues and earnings will both increase, also with the new plants contributing to earnings.

“The steel industry brought us not only happiness in key regions of ours in 2012. Given this background, we have still recorded sound operating growth, and together with our fundamental optimism for 2013 this means that we can propose to the Annual General Meeting an attractive dividend of € 0.50 per share,” Ines Kolmsee, the SKW Metallurgie Group’s CEO, commented.

Gross margin up to 29.2% via orientation to high-margin products

The orientation to high-margin products and the group’s high efficiency regarding cost of materials are reflected in a substantial increase in the gross margin from 27.6% in the previous year to 29.2%. However, EBITDA, EBIT and earnings before and after taxes were characterized by the quoted positive one-off factors in 2011 in a year-on-year comparison. After adjustment for these factors, the earnings were, in some cases, slightly lower than, and in some cases slightly higher (EBIT) than the previous year’s figures. The financial result deteriorated as a result of the higher financial debt during the year and the one-off costs in connection with the group’s successful refinancing in the first quarter of 2012.

Increase in net cash flow reflects improvement in working capital

The SKW Metallurgie Group’s equity ratio has improved slightly to 40.8% (December 31, 2011: 40.7%), net financial debt fell substantially in the fourth quarter by around € 13 million to € 73.9 million (September 30, 2012: € 88.6 million; December 31, 2011: € 77.9 million), and gearing remained stable at 0.61 (December 31, 2011: 0.61); it thus continues to have a sound balance sheet structure. Borrowing was secured over the long term at the start of 2012 at favorable conditions. The continued focus on reducing working capital paid off in fiscal year 2012. Thanks to resulting inflows of funds in the amount of € 21.7 million, the cash flow from operating activities (net cash flow) improved very substantially from € 6.1 million to € 30.4 million.

Outlook 2013 Positive free cash flow in focus

At the start of fiscal year 2013, what are mostly still unresolved problems in the sovereign debt crisis in key European countries mean that it is difficult to forecast business. This relates, in particular, to the Swedish group company, whose products are primarily sold on the European market for logistical reasons. In Brazil, irrespective of macroeconomic developments, competition has intensified for key sales markets for the SKW Metallurgie Group. In contrast, positive impetus is being forecast for the North American steel market. On the whole, the Executive Board is thus optimistic that the group companies’ sales and revenues will grow in line with the growth in the quantities of steel produced in the geographic markets that the group serves, and increase further from the penetration of new geographic markets in the CIS countries and in India, as well as from new product developments. The new plant in Bhutan will mostly supply within the group and, as planned, it will thus generate practically no additional revenues with third parties.

Experts continue to expect above-average growth in emerging nations, and a continued re-industrialization of North America. As a result, the Executive Board believes that sales in these countries will make a significant contribution to consolidated earnings and, in particular, to increasing EBITDA. Additional EBITDA impetus will also come from the new plants, which have been characterized by start-up costs until into 2012. In terms of the balance sheet, in 2013 as a result of the preliminary conclusion of the group’s expansion and corresponding lower capital expenditure, the Executive Board is forecasting a positive free cash flow, which can be employed for a further reduction in net financial debt as well as for attractive dividend proposals.

The report on fiscal year 2012 and further information on the group can be found on this website.

Contact

SKW Stahl-Metallurgie Holding AG
Christian Schunck
Head of IR and Corporate Communications
Rathausplatz 11
84579 Unterneukirchen
Germany

Telephone IR/Press: +49 89 5998923-22
Fax: +49 89 5998923-29
E-mail: schunck@skw-steel.com

About SKW Stahl-Metallurgie Holding AG

The SKW Metallurgie Group is the global market leader for chemical additives for hot metal desulphurization, and for cored wire used in secondary metallurgy. The group’s products enable steel-makers to efficiently manufacture high-quality steel products. Clients include the world’s leading companies in the steel industry. The SKW Metallurgie Group has more than 50 years of metallurgical know how, and currently operates in more than 40 countries. What is more, the group is a leading supplier of Quab specialty chemicals, which are mainly used in the global production of industrial starch for the paper industry. The company’s operating business is broken down into the two core segments “Cored Wire” and “Powder and Granules”, and the “Other” segment. The SKW Metallurgie Group is headquartered in Germany with production facilities in France, the US (6), Canada, Mexico, Brazil, South Korea, Sweden, Bhutan, Russia the Peoples’ Republic of China (2) and India (2 via joint venture).

Shares of SKW Stahl-Metallurgie Holding AG have been listed in Frankfurt/M. (Germany) Stock Exchange’s Prime Standard since December 1, 2006 with ISIN DE000SKWM013 (since August 15, 2011: new ISIN DE000SKWM021), and have been included in the SDAX index from June 23, 2008.

DISCLAIMER

This press release contains statements on future developments that are based on currently available information and involve risks and uncertainties that could cause the actual results to differ from these forward-looking statements. These risks and uncertainties include, for example, unpredictable changes in political and economic conditions, particularly in the steel and paper industry, the competitive situation, interest and currency risks, technological development as well as other risks and unexpected circumstances. SKW Stahl-Metallurgie Holding AG and its group companies accept no obligation to update such forward-looking statements.

KPIs for SKW Stahl-Metallurgie Holding AG for fiscal year 2012 (in € million)

(1)    Earnings in 2011 included a bargain purchase of € 2.6 million and the reversal of a provision of € 6.2 million; in 2012, the corresponding figure was € 0.4 million
(2)    Based on 6,544,930 shares
(3)    For 2012: Proposal to the Annual General Meeting on June 11, 2013
(4)    Net financial debt to equity (incl. non-controlling interests)

• Group revenues of more than € 400 million and EBITDA between € 22 and 24 million expected
• Economic uncertainty leads to cautious demand from steel industry in Q4
• Growth potential for 2013 from new plants, economic uncertainties remain

The specialty chemicals group SKW Metallurgie specifies its forecast for full year 2012. This is based on the continuously high economic uncertainty in important industrial nations, particularly in Europe. What is more, the Brazilian economy has not revitalized during H2 as expected, and is characterized by increasing competition in segments of significance for the SKW Metallurgie Group. In total, the economic situation in Q4 has led to an increasing reluctance in the ordering patterns of the steel industry, which is of particular relevance to the Group. For instance, steel production (according to Worldsteel Association) in October and November 2012 decreased significantly compared to the previous year in the EU (-5.8%) and the USA (-4.1%).

For business year 2012 reported EBITDA is therefore expected at a figure between € 22 and € 24 million. This entails significant burdens from start-up costs of the new plants in Bhutan, Russia and Sweden, particularly in H1/2012. Group revenues should reach slightly more than € 400 million. EBITDA in 2013 is in principle expected to increase significantly, based on the positive EBITDA contributions expected for next year from the plant expansions in Brazil and the USA as well as from the new production plants in Russia and Bhutan, which commenced production in 2012. However, this can be realistically forecast only under the assumption of a stable global economy.

Contact

SKW Stahl-Metallurgie Holding AG
Christian Schunck
Head of IR and Group Communications
Rathausplatz 11
84579 Unterneukirchen
Germany

Telephone IR/Press: +49 89 5998923-22
Telefax IR/Press: +49 89 5998923-29
E-mail: schunck@skw-steel.com

About SKW Stahl-Metallurgie Holding AG

SKW Metallurgie is the global market leader for chemical additives for hot metal desulphurization, and for cored wire used in secondary metallurgy. The Group’s products enable steel-makers to efficiently manufacture high-quality steel products. Clients include the world’s leading companies in the steel industry. The SKW Metallurgie Group has more than 50 years of metallurgical know how, and currently operates in more than 40 countries. What is more, the Group is a leading supplier of Quab specialty chemicals, which are mainly used in the global production of industrial starch for the paper industry. The company’s operating business is broken down into the two core segments “Cored Wire and “Powder and Granules”, and the “Other” segment. The SKW Metallurgie Group is headquartered in Germany with production facilities in France, the US (6), Canada, Mexico, Brazil, South Korea, Sweden, Bhutan, Russia, the Peoples’ Republic of China (2) and India (2 via joint venture).

Shares of SKW Stahl-Metallurgie Holding AG have been listed in Frankfurt Stock Exchange’s Prime Standard since December 1, 2006 with ISIN DE000SKWM013 (since August 15, 2011: new ISIN DE000SKWM021), and have been included in the SDAX index from June 23, 2008.

DISCLAIMER

This press release contains statements on future developments that are based on currently available information and involve risks and uncertainties that could cause the actual results to differ from these forward-looking statements. These risks and uncertainties include, for example, unpredictable changes in political and economic conditions, particularly in the steel and paper industry, the competitive situation, interest and currency risks, technological development as well as other risks and unexpected circumstances. SKW Stahl-Metallurgie Holding AG and its Group companies accept no obligation to update such forward-looking statements.

• Q3: New plant in Bhutan records positive EBITDA; consolidated EBITDA up year-on-year
• Nine-month period: Revenues and EBITDA only slightly lower than previous year despite start-up costs for new plants and increasingly difficult underlying conditions
• Positive outlook for 2013 despite economic uncertainties

The specialty chemicals group SKW Metallurgie continues to be right on track after the first nine months of 2012 despite the deteriorating underlying conditions. Consolidated revenues totaled € 315.4 million, slightly lower than the figure from the same period of the previous year of € 324.7 million; however, this was to be expected as a result of the economic slowdown in the third quarter. Despite this sluggish revenue growth, EBITDA was up from € 6.1 million to € 6.3 million in the third quarter thanks to the optimized use of materials, and currency translation effects. After three quarters (nine-month period), the SKW Metallurgie Group recorded EBITDA of € 19.8 million. The comparable figure from the previous year totaled € 23.2 million. Given this background, the SKW Metallurgie Group forecasts for 2012 as a whole an EBITDA figure comparable to the previous year’s level in operational terms; however, it will, as announced, be lower than the figure reported for 2011. Substantial improvements are expected in 2013 from the new plants’ contributions to earnings if the global economy remains at least stable.

“In view of the charges resulting from our new plants during the first half of the year, and the slowdown in the global economy, we can be very happy with the first three quarters of 2012. We continue to believe that in 2013 we will reach significantly improved EBITDA based on the contributions from the new plants,” commented the SKW Metallurgie Group’s CEO Ines Kolmsee.

Highly efficient use of materials is reflected in the increase in the gross margin to 28.4%

The company’s high level of cost efficiency can be seen in the improved gross margin (up from 27.5% to 28.4%) compared to the same period of the previous year. EBIT and EBT were also higher than the previous year’s figures in the third quarter; however, in the entire nine-month period the start-up costs for the new plants in the first half of the year meant that the previous year’s figures were not fully met.

Improvement in working capital leads to substantial increase in cash flow from operating activities

The SKW Metallurgie Group has an equity ratio of 39.1% (December 31, 2011: 40.7%), net financial debt of € 86.6 million (December 31, 2011: € 77.9 million) and gearing of 0.69 (December 31, 2011: 0.61) and thus continues to have a very solid balance sheet structure. Borrowing was secured over the long term at the start of this year at favorable conditions. The cash flow from operating activities improved significantly by more than € 4 million during the 2012 nine-month period (€ 13.8 million) compared to the 2011 nine-month period (€ 9.7 million).

Positive EBITDA contributions from Bhutan since Q3 2012

Growth in steel production correlates closely with global economic growth, and although these are viewed with an increasing degree of skepticism and insecurity, the SKW Metallurgie Group’s Executive Board has confirmed its forecasts on a positive impetus from the new plants. Operating EBITDA in the current year of 2012 is to reach levels comparable to the 2011 figures; however, as announced, the EBITDA disclosed will fall below the figure reported for the previous year of € 31.7 million. In view of the full contributions to earnings expected in the coming year from the expansions to the plants in Brazil and the USA, the plant in Sweden which is being modernized, and the new plants in Russia and Bhutan that were completed in 2012, a significant increase in EBITDA is forecast for 2013. Calcium silicon has already been produced successfully in Bhutan since the third quarter of 2012, with the result that the Bhutanese group company made a positive contribution to consolidated EBITDA in the third quarter of 2012. However, the positive outlook for 2013 can only be realistically forecast assuming that the global economy enjoys at least stable growth. The forecast positive free cash flow will lead to a reduction in net financial debt, and also to proposing the disbursement of attractive dividends to shareholders.

Contact

SKW Stahl-Metallurgie Holding AG
Christian Schunck
Head of IR and Group Communications
Rathausplatz 11
84579 Unterneukirchen
Germany

Telephone IR/Press: +49 89 5998923-22
Telefax IR/Press: +49 89 5998923-29
E-mail: schunck@skw-steel.com

KPIs for SKW Stahl-Metallurgie Holding AG after the first three quarters of 2012

^{(1)    Earnings in 2011 included a bargain purchase of € 2.6 million (thereof: € -0.1 million in Q3 2011).
(2)    Based on 6,544,930 shares
(3)    Net financial debt to equity (incl. non-controlling interests)}

About SKW Stahl-Metallurgie Holding AG

SKW Metallurgie is the global market leader for chemical additives for hot metal desulphurization, and for cored wire used in secondary metallurgy. The Group’s products enable steel-makers to efficiently manufacture high-quality steel products. Clients include the world’s leading companies in the steel industry. The SKW Metallurgie Group has more than 50 years of metallurgical know how, and currently operates in more than 40 countries. What is more, the Group is a leading supplier of Quab specialty chemicals, which are mainly used in the global production of industrial starch for the paper industry. The company’s operating business is broken down into the two core segments “Cored Wire and “Powder and Granules”, and the “Other” segment. The SKW Metallurgie Group is headquartered in Germany with production facilities in France, the US (6), Canada, Mexico, Brazil, South Korea, Sweden, Bhutan, Russia, the Peoples’ Republic of China (2) and India (2 via joint venture).

Shares of SKW Stahl-Metallurgie Holding AG have been listed in Frankfurt Stock Exchange’s Prime Standard since December 1, 2006 with ISIN DE000SKWM013 (since August 15, 2011: new ISIN DE000SKWM021), and have been included in the SDAX index from June 23, 2008.

DISCLAIMER

This press release contains statements on future developments that are based on currently available information and involve risks and uncertainties that could cause the actual results to differ from these forward-looking statements. These risks and uncertainties include, for example, unpredictable changes in political and economic conditions, particularly in the steel and paper industry, the competitive situation, interest and currency risks, technological development as well as other risks and unexpected circumstances. SKW Stahl-Metallurgie Holding AG and its Group companies accept no obligation to update such forward-looking statements.

• Group revenues in first half of 2012 at € 219.9 million above previous year
• EBITDA at € 13.5 million despite start-up costs of new plants and challenging
  economic conditions in important sales regions
• Cash flow from operating activities jumps from € -1.6 million to € 15.0 million
• Guidance for 2012 und 2013 confirmed

The SDAX-listed specialty chemicals group SKW Metallurgie showed a solid operative performance in the first half of 2012, despite expected start-up costs in the new plants and challenging economic conditions in important sales regions. For instance, Group revenues at € 219.9 million were 2% higher than the comparable figure of the previous year at € 215.6 million. It should be taken into consideration in this context that while steel production in North America (which is of the essence for Group revenues) increased by 7.2% in the period under review, steel production decreased in the EU by 4.6% and in Brazil by 2.5%. In spite of this development and of the significant start-up costs of the new plants (mainly in Bhutan), EBITDA reached € 13.5 million. The comparable figure (adjusted for a non-cash one-off effect from an acquisition) of the previous year amounted to € 17 million. Since significant improvements are expected from the new plants for the second half of the year, SKW Metallurgie confirms its guidance for full years 2012 and 2013 despite continued economic uncertainties. Hence, the Executive Board expects for 2012 EBITDA that will operatively correspond to the level of the previous year (yet below the reported figure for 2011), and for 2013 significant improvements, given a stabilization of the global economy.

“The first half year was characterized by start-up costs of the new plants and increasing economic uncertainties. Nevertheless, revenues and earnings were in our expected range. We can therefore confirm our guidance for 2012 and 2013,“ commented the SKW Metallurgie Group’s CEO Ines Kolmsee.

Gross margin at 28.2% increased compared to full year figure of 2011

In the USA, the Chapter XI proceedings of a significant steel client adversely affected some indicators at the end of the second quarter. The gross margin at 28.2% was improved compared to the figure for the full year of 2011 (27.6%). As expected, earnings figures below EBITDA could at half year not reach the comparable figures of the previous year. However, in the second quarter 2012 an improvement after taxes was reached from € 3.4 million to € 3.6 million.

Solid quality of balance sheet – significant improvement of operating cash flow

The balance sheet quality continues to be solid at an equity ratio of 38.9% (December 31, 2011: 40.7%), net financial debt of € 83.4 million (December 31, 2011: € 77.9 million) and a gearing of 0.65 (December 31, 2011: 0.61). Due to efficient working capital management, cash flow from operating activities was very remarkably increased to € 15.0 million by June 30, 2012 compared to the first half year of 2011 at € minus 1.6 million. Thanks to a comprehensive refinancing of the Group in the first quarter of 2012, the SKW Metallurgie Group has in the long term secured its growth by an optimized finance structure at competitive conditions.

Guidance for 2012 und 2013 confirmed despite increasing uncertainties

The assessments of experts regarding the development of the world economy in general and of steel production in particular are characterized by increasing macroeconomic uncertainties despite reserved optimism. Based on this macroeconomic situation as well as on the start-up costs of the new plants in the first half year of 2012, the SKW Metallurgie Group continues to expect that in current business year 2012, EBITDA will reach the sound operative results of 2011, yet not fully reach the previous year figure of € 31.7 million for reported EBITDA. Full
earnings contributions from the new plants (plant expansions in Brazil and the USA, plant acquisition in Sweden, newly erected plants in Russia and Bhutan) continue to be expected for 2013. At that point in time, along with decreasing investments, the Group’s free cash flow should be significantly positive, and should be used, as announced, to reduce borrowings.

Moreover, the SKW Metallurgie Group continues to regard itself as a dividend share, and intends to let its shareholders participate appropriately in the expected increases in earnings.

The report on H1 2012 and further information on the Group can be found here.

KPIs for SKW Stahl-Metallurgie Holding AG for H1 (in € million)

H1-2012 H1-2011           Q2-2012 Q2-2011

June 30, 2012 Dec. 31, 2011

(1)    Earnings in Q1-2011 contained a bargain purchase income of € 2.7 million.
(2)    Based on 6,544,930 shares
(3)    Net financial debt to equity (incl. non-controlling interests)

Contact

SKW Stahl-Metallurgie Holding AG
Christian Schunck
Head of IR and Corporate Communications

Rathausplatz 11
84579 Unterneukirchen
Germany

Telephone IR/Press: +49 89 5998923-22
Fax: +49 89 5998923-29
E-mail: schunck@skw-steel.com

About SKW Stahl-Metallurgie Holding AG

SKW Metallurgie is the global market leader for chemical additives for hot metal desulphurization, and for cored wire used in secondary metallurgy. The Group’s products enable steel-makers to efficiently manufacture high-quality steel products. Clients include the world’s leading companies in the steel industry. The SKW Metallurgie Group has more than 50 years of metallurgical know how, and currently operates in more than 40 countries. What is more, the Group is a leading supplier of Quab specialty chemicals, which are mainly used in the global production of industrial starch for the paper industry. The company’s operating business is broken down into the two core segments “Cored Wire and “Powder and Granules”, and the “Other” segment. The SKW Metallurgie Group is headquartered in Germany with production facilities in France, the US (6), Canada, Mexico, Brazil, South Korea, Sweden, Bhutan, Russia the Peoples’ Republic of China (2) and India (2 via joint ventures).

Shares of SKW Stahl-Metallurgie Holding AG have been listed in Frankfurt Stock Exchange’s Prime Standard since December 1, 2006 with ISIN DE000SKWM013 (since August 15, 2011: new ISIN DE000SKWM021), and have been included in the SDAX index from June 23, 2008.

DISCLAIMER

This press release contains statements on future developments that are based on currently available information and involve risks and uncertainties that could cause the actual results to differ from these forward-looking statements. These risks and uncertainties include, for example, unpredictable changes in political and economic conditions, particularly in the steel and paper industry, the competitive situation, interest and currency risks, technological development as well as other risks and unexpected circumstances. SKW Stahl-Metallurgie Holding AG and its Group companies accept no obligation to update such forward-looking statements.

• Group revenues in first quarter 2012 increased by 12 % to € 113.2 million
• Operating EBIT at € 3.5 million almost at level of previous year (€ 4.3 million)
• Improved cash flow from operating activity
• Guidance adjusted for 2012, and reiterated for 2013

The SDAX-listed specialty chemicals group SKW Metallurgie recorded another improvement in revenues in Q1 2012. As a result of the group’s global expansion and a slight increase in demand from the steel industry, consolidated revenues were up 12% to € 113.2 million (Q1 2011: € 101.0 million). In contrast, in the first half of the year EBITDA will still be substantially depressed by the start-up costs for the new plants, in particular in Bhutan. After adjustment for the non-cash one-off effect from the acquisition of a plant in Sweden, EBITDA in Q1 2011 totaled € 7.3 million, and in Q1 2012 it totaled € 6.0 million due to the start-up costs for the new plants. The new plants are only expected to record notable revenues and make a positive contribution to EBITDA in the second half of the year. However, from today’s perspective, 2012 as a whole will continue to be characterized by start-up costs for the new plants as well as macroeconomic uncertainties due to the sovereign debt crisis, in particular in Europe. As a result, the SKW Metallurgie Group’s Executive Board is forecasting EBITDA for 2012 that correspond to the previous year’s level in operating terms, but which are lower than the reported figure for 2011.

“In view of the economic uncertainties, we are very pleased with our revenue growth in Q1. Our expansion projects still include start-up costs at the start of the year. This is normal for new plants. If we succeed in turning around in the second half of the year, we are confident that, given a further stabilization in the global economy in 2012, we will be able to match or even exceed the previous year’s figures for revenues and operating EBITDA,” commented the SKW Metallurgie Group’s CEO Ines Kolmsee.

Expansion projects continue to impact earnings development

Expansion projects again had a strong impact on earnings in Q1 2012; start-up costs for these projects meant that the expense items showed a stronger percentage increase than revenues. In addition, figures from the same period of 2011 include a positive one-off effect from the first-time consolidation of the plant in Sweden (bargain purchase). Despite the lower amortization of intangible assets, EBIT adjusted for the bargain purchase fell from € 4.3 million to € 3.5 million. The high investments and one-off effects from restructuring borrowing were also reflected in financing costs. Earnings before taxes fell correspondingly. In addition, imputed tax expenses were high due to extraordinary tax factors, with the result that the earnings per share totaled just € 0.13 (Q1 2011: € 0.65).

End-to-end refinancing secures long-term growth perspectives

The Group optimized the structure and interest levels for its borrowing in the first quarter with extensive refinancing of the SKW Metallurgie Group by the successful placement of a promissory note loan and by signing a new master credit agreement. On the whole, the balance sheet continues to be very solid as of March 31, 2012, with an equity ratio of 39.5% (December 31, 2011: 40.7%). Net cash outflow for investments fell, as announced, compared to the same period of 2011 from € 12.5 million to € 4.6 million, and will remain substantially lower than the 2011 figures over the whole of 2012. As investments were primarily financed by borrowing in view of the gross cash flow of € 1.2 million (Q1 2011: € 3.3 million), net financial debt has increased from € 77.9 million at the end of 2011 to € 82.2 million on March 31, 2012.

Forecasts for 2012 and 2013 characterized by economic uncertainties

As a result of the general economic situation – in particular the sovereign debt crisis – and the start-up costs for the new plants, the SKW Metallurgie Group’s Executive Board believes that the good operating results of 2011 will be reached again in current fiscal year 2012, however that the recorded EBITDA will not fully reach the previous year’s figure of EUR 31.7 million, which was coined by one-offs. The Group continues to expect that the new plants (extensions to plants in Brazil and the USA, acquisition of a plant in Sweden, new plants constructed in Russian and Bhutan) will make a full contribution to earnings in 2013. Given this background, for 2013 the Executive Board is aiming, as already announced, for a significant improvement in key financial indicators and, in particular, a positive free cash flow – assuming a further recovery in the global economy.

The report on Q1 2012 and further information on the Group can be found on this Website.

KPIs for SKW Stahl-Metallurgie Holding AG  for Q1 (in € million)

(1) Earnings in the Powder and Granules segment included bargain purchase income of € 2.7 million in Q1 2011
(2) Based on 6,544,930 shares
(3) Net financial debt to equity (incl. non-controlling interests)

Contact

SKW Stahl-Metallurgie Holding AG
Christian Schunck
Head of IR and Corporate Communications
Rathausplatz 11
84579 Unterneukirchen

Germany

Telephone IR/Press: +49 89 5998923-22
Fax: +49 8634 62720-16
E-mail: schunck@skw-steel.com
Internet: www.skw-steel.com

About SKW Stahl-Metallurgie Holding AG

SKW Metallurgie is the global market leader for chemical additives for hot metal desulphurization, and for cored wire used in secondary metallurgy. The Group’s products enable steel-makers to efficiently manufacture high-quality steel products. Clients include the world’s leading companies in the steel industry. The SKW Metallurgie Group has more than 50 years of metallurgical know how, and currently operates in more than 40 countries. What is more, the Group is a leading supplier of Quab specialty chemicals, which are mainly used in the global production of industrial starch for the paper industry. The company’s operating business is broken down into the two core segments “Cored Wire and “Powder and Granules”, and the “Other” segment. The SKW Metallurgie Group is headquartered in Germany with production facilities in France, the US (6), Canada, Mexico, Brazil, South Korea, Sweden, Bhutan, Russia the Peoples’ Republic of China (2) and India (2 via joint ventures).

Shares of SKW Stahl-Metallurgie Holding AG have been listed in Frankfurt Stock Exchange’s Prime Standard since December 1, 2006 with ISIN DE000SKWM013 (since August 15, 2011: new ISIN DE000SKWM021), and have been included in the SDAX index from June 23, 2008.

DISCLAIMER

This press release contains statements on future developments that are based on currently available information and involve risks and uncertainties that could cause the actual results to differ from these forward-looking statements. These risks and uncertainties include, for example, unpredictable changes in political and economic conditions, particularly in the steel and paper industry, the competitive situation, interest and currency risks, technological development as well as other risks and unexpected circumstances. SKW Stahl-Metallurgie Holding AG and its Group companies accept no obligation to update such forward-looking statements.

• Record revenues of € 428.9 million (up 12.6%) in 2011
• EBITDA at € 31.7 million, up 10% year-on-year
• Constant dividend of € 0.50 per share
• Further growth potential for 2012 and 2013

Unterneukirchen (Germany) The SDAX-listed specialty chemicals group SKW Metallurgie was able to record new records for revenues and earnings in fiscal year 2011. Consolidated revenues lifted by 12.6% to € 428.9 million (2010: € 380.8 million). EBITDA was up from € 28.8 million to € 31.7 million. Given this background, the Executive and Supervisory Boards will make a proposal to disburse an unchanged dividend of € 0.50 per share to the General Meeting on June 14, 2012. Assuming that the positive growth in the global economy will stabilize, the Executive Board is forecasting the profitable growth to continue in 2012 and 2013.

“2011 was a very exciting year for us – characterized by continued profitable growth and dynamic global expansion. This will result in major opportunities and potential for us in the coming years, however full realization of these has been partially delayed. We are forecasting further revenue and earnings growth in 2012 and 2013,” commented the SKW Metallurgie Group’s CEO Ines Kolmsee.

Earnings growth characterized by a large number of one-off factors

Earnings in the year under review were characterized by a large number of non-operating extraordinary factors in the second half of the year. The reversal of the majority of a provision that had been formed for a possible antitrust penalty (€ +6.2 million) improved earnings. This was based on a positive court ruling which changed the estimate of risk with regard to possible outflows of funds in this connection. In contrast, the start-up costs for the new production facilities in Bhutan and Russia had a negative impact (€ -2.4 million). In addition, a case of fraud for raw materials purchased in China (€ -1.9 million), a back payment to be made to a former supplier for 2009 as a result of a court decision (€ -1.5 million) and a receivable that had to be deleted in connection with a bankruptcy from the year of 2007 (€ -0.3 million) led to extraordinary expenses. Changes in exchange rates also led to a significant net reduction of € 4.9 million compared to 2010 (2010: € +2.3 million; 2011: € -2.6 million).

Development below EBITDA was substantially positive. For example, earnings after taxes and non-controlling interests increased very significantly by more than 60% to € 12.2 million (2010: € 7.5 million), and earnings per share thus lifted from € 1.15 to € 1.86.

Balance sheet structure characterized by strong expansion, successful refinancing

The balance sheet and cash flow statement were characterized by the Group’s strong growth and dynamic expansion in 2011. The Group invested a total of € 33.9 million (2010: € 24.7 million) in its future growth. The requisite financing in this regard primarily stemmed from borrowings being taken out. As a result, net financial debt increased from € 47.3 million to € 77.9 million. The SKW Metallurgie Group has an equity ratio of 40.6% (December 31, 2010: 44.3%), and thus continues to have a very solid balance sheet structure.

Thanks to the excellent earnings, the gross cash flow increased from € 14.9 million to € 16.5 million. At the start of 2012, the company also succeeded in refinancing its borrowing at favorable conditions with the issue of a promissory note bond for € 45 million with terms of up to seven years, and by signing a new three-year master credit agreement of a comparable size. As a result, the SKW Metallurgie Group is also financially well equipped for future profitable growth.

Further growth potential for 2012 and 2013

The SKW Metallurgie Group is taking a positive view of fiscal year 2012. Despite the continued political and economic insecurities, experts’ forecasts for the underlying conditions for the global economy are cautiously optimistic. Growth in the steel industry – which is by far the most important customer industry for the Group – is forecast to exhibit different regional patterns. For example, demand in North and South America is expected to continue to enjoy positive growth, whereas steel production in Europe is expected to stagnate or even fall slightly. In addition, fiscal year 2012 will also be characterized by strategic high-growth projects. The new plants in Sweden, Bhutan and Russia and the expansion of the facilities in Brazil and the USA are expected to make a full positive contribution to earnings from 2013 as a result of the fact that their start-up phases have, in some cases, been longer than initially forecast. In spite of this, however, the Executive Board believes that there will be a renewed increase in EBITDA in 2012, as well as a further improvement in consolidated revenues. The Group is aiming for a renewed substantial increase in EBITDA for fiscal year 2013 – assuming a further recovery in the global economy.

The 2011 annual report and further information on the company can be found online at www.skw-steel.com.

Contact

SKW Stahl-Metallurgie Holding AG
Christian Schunck
Head of IR and Group Communications
Rathausplatz 11
84579 Unterneukirchen

Germany

Telephone IR/Press: +49 89 5998923-22
Fax: +49 8634 62720-16

E-mail: schunck@skw-steel.com
Internet: www.skw-steel.com

About SKW Stahl-Metallurgie Holding AG

SKW Metallurgie is the global market leader for chemical additives for hot metal desulphurization, and for cored wire used in secondary metallurgy. The Group’s products enable steel-makers to efficiently manufacture high-quality steel products. Clients include the world’s leading companies in the steel industry. The SKW Metallurgie Group has more than 50 years of metallurgical know how, and currently operates in more than 40 countries. What is more, the Group is a leading supplier of Quab specialty chemicals, which are mainly used in the global production of industrial starch for the paper industry. The company’s operating business is broken down into the two core segments “Cored Wire and “Powder and Granules”, and the “Other” segment. The SKW Metallurgie Group is headquartered in Germany with production facilities in France, the US (6), Canada, Mexico, Brazil, South Korea, Sweden, Bhutan, Russia the Peoples’ Republic of China (2) and India (2 via joint ventures).

Shares of SKW Stahl-Metallurgie Holding AG have been listed in Frankfurt (Germany) Stock Exchange’s Prime Standard since December 1, 2006 with ISIN DE000SKWM013 (since August 15, 2011: new ISIN DE000SKWM021), and have been included in the SDAX index from June 23, 2008.

DISCLAIMER

This press release contains statements on future developments that are based on currently available information and involve risks and uncertainties that could cause the actual results to differ from these forward-looking statements. These risks and uncertainties include, for example, unpredictable changes in political and economic conditions, particularly in the steel and paper industry, the competitive situation, interest and currency risks, technological development as well as other risks and unexpected circumstances. SKW Stahl-Metallurgie Holding AG and its Group companies accept no obligation to update such forward-looking statements.

KPIs for SKW Stahl-Metallurgie Holding AG

(in € million

2011 2010           Change

Dec. 31, 2011    Dec. 31, 2010

(1)    The bulk of currency translation effects and the start-up costs in Bhutan and Russia were booked in the Cored Wire segment, and the reversal of the provision in the Powder and Granules segment.

(2)    Based on 6,544,930 shares

(3)    Announced dividend proposal to the general meeting on June 14, 2012

(4)    Net financial debt to equity (incl. non-controlling interests)

March 6, 2012

• High demand results in increase of emission volume

Unterneukirchen (Germany) The SDAX-quoted specialty chemicals Group SKW Metallurgie has successfully placed on the financial markets its first-time promissory note loan for a total amount of € 45 million. Interest by the primarily domestic investors was huge, and the emission was accordingly oversubscribed. Thereby, the initial emission volume maximum in the amount of € 40 mill. was increased by € 5 million to € 45 million due to high demand. The promissory note loan is being issued in three pieces with durations of three, five, and seven years, each with a fixed and a variable interest scheme. Due to the high interest by the financial markets, the interest schemes were fixed at the lower end of the offer spread. Thereby, the average interest expense in the SKW Metallurgie Group is being lowered, since credit lines with higher interest will be replaced. Commerzbank Aktiengesellschaft and NORD/LB Norddeutsche Landesbank have led the transaction as bookrunners.

“Positive investor’s feedback to our promissory note loan and the favorable conditions resulting from it, have shown that the SKW Metallurgie Group enjoys a high standing on the financial markets. By this step, we have significantly improved our balance sheet and finance structure, and also positioned ourselves well for our forthcoming profitable growth,“ says Group CEO Ines Kolmsee.

By the issuance of this promissory note loan, the SKW Metallurgie Group gains access to a new finance source, improves the maturity profile of its financial liabilities, and broadens its investor base. The amount of the loan will on the one hand be used to re-finance existing loans, but on the other hand will secure the necessary financial reserves for the scheduled future growth.

Further information on the Group may be found in this web site.

Contact

SKW Stahl-Metallurgie Holding AG
Christian Schunck
Head of IR and Corporate Communications
Prinzregentenstrasse 68
81675 Muenchen
Germany

Direct line IR/Press: +49 89 5998923-22
Fax: +49 89 5998923-29

E-mail: schunck@skw-steel.com
Internet: www.skw-steel.com

About SKW Stahl-Metallurgie Holding AG

SKW Metallurgie is the global market leader for chemical additives for hot metal desulphurization, and for cored wire used in secondary metallurgy. The Group’s products enable steel-makers to efficiently manufacture high-quality steel products. Clients include the world’s leading companies in the steel industry. The SKW Metallurgie Group has more than 50 years of metallurgical know how, and currently operates in more than 40 countries. What is more, the Group is a leading supplier of Quab specialty chemicals, which are mainly used in the global production of industrial starch for the paper industry. The company’s operating business is broken down into the two core segments “Cored Wire” and “Powder and Granules”, and the “Other” segment. The SKW Metallurgie Group is headquartered in Germany with production facilities in France, the US (6), Canada, Mexico, Brazil, South Korea, Sweden, Russia, Bhutan, the People’s Republic of China (2) and India (2 via joint venture). At the existing site in Brazil, a new production plant is under construction.

Shares of SKW Stahl-Metallurgie Holding AG have been listed in Frankfurt Stock Exchange’s Prime Standard since December 1, 2006 with ISIN DE000SKWM013 (since August 15, 2011: New ISIN DE000SKWM021), and have been included in the SDAX index from June 23, 2008.

DISCLAIMER

This press release contains statements on future developments that are based on currently available information and involve risks and uncertainties that could cause the actual results to differ from these forward-looking statements. These risks and uncertainties include, for example, unpredictable changes in political and economic conditions, particularly in the steel and paper industry, the competitive situation, interest and currency risks, technological development as well as other risks and unexpected circumstances. SKW Stahl-Metallurgie Holding AG and its Group companies accept no obligation to update such forward-looking statements.

• Oliver Schuster to assume CFO position effective March 1, 2012
• Outlook for 2012 remains positive
• Operative guidance for 2011 confirmed

Unterneukirchen (Germany) The Supervisory Board of the SDAX-quoted specialty chemicals Group SKW Metallurgie decided in its meeting of December 20, 2011 unanimously that Mr. Oliver Schuster (47) will be appointed to the Executive Board of SKW Stahl-Metallurgie Holding AG effective March 1, 2012. Mr. Schuster has served since 2000 in responsible positions at Infineon Technologies AG, lastly as CFO of their largest operative unit „Industrial & Multimarket“. In the SKW Metallurgie Group, he is going to assume the finance department, which will have been overseen by CEO Ines Kolmsee (additionally acting CFO) until his commencement. As of the appointment of Mr. Schuster, the Executive Board of the company will consist of three members.

“We are very pleased to have attained in Mr. Schuster a highly qualified candidate as CFO for the SKW Metallurgie Group. He is particularly coined by his comprehensive international experience, of which the SKW Metallurgie Group will benefit on its global growth track,“ says the Chairperson of the Supervisory Board, Titus Weinheimer.

Operative result for 2011 above previous year – EBITDA growth for 2012 reiterated

For the current business year 2011, the SKW Metallurgie Group forecasts an operative EBITDA above the previous year figure of € 28.8 million despite the softening economic climate. However, reported EBITDA is expected to not reach the guidance of € 32 million.

Pertaining reasons are negative one-off effects, in particular a payment made in Q4/2011 in connection with a current legal dispute, negative currency impacts and a fraud case in China. With regard to the overall good operative result, the SKW Metallurgie Group nevertheless assumes to be able to propose an attractive dividend payout for business year 2011 to the Annual General Meeting 2012. For business year 2010, € 0.50 per share had been disbursed.

Uncertainty regarding the impacts of the financial crisis onto the real economy has significantly increased in the recent months, and the experts unilaterally assume a slow-down of the global economy. Nevertheless, the SKW Metallurgie Group maintains its basically positive assessment concerning the growth potentials of the Group. Under the assumption of an at least stable development of the global economy and in particular of steel production, which is of particular relevance for the SKW Metallurgie Group, the Executive Board confirms its forecast of reaching growth in revenues and earnings in the coming business year 2012. That optimism is supported by the expected improved EBITDA contributions of the new plants in Bhutan, Russia and Sweden, as well as of the extended production facility in Brazil. Since the large investment projects of the SKW Metallurgie Group have been completed for the most part, free cash flow shall be improved in 2012.

Further information on the Group may be found in this web site.

Contact

SKW Stahl-Metallurgie Holding AG
Christian Schunck
Head of IR and Corporate Communications
Prinzregentenstrasse 68
81675 Muenchen
Germany

Direct line IR/Press: +49 89 5998923-22
Fax: +49 89 5998923-29

E-mail: schunck@skw-steel.com
Internet: www.skw-steel.com

About SKW Stahl-Metallurgie Holding AG

SKW Metallurgie is the global market leader for chemical additives for hot metal desulphurization, and for cored wire used in secondary metallurgy. The Group’s products enable steel-makers to efficiently manufacture high-quality steel products. Clients include the world’s leading companies in the steel industry. The SKW Metallurgie Group has more than 50 years of metallurgical know how, and currently operates in more than 40 countries. What is more, the Group is a leading supplier of Quab specialty chemicals, which are mainly used in the global production of industrial starch for the paper industry. The company’s operating business is broken down into the two core segments “Cored Wire” and “Powder and Granules”, and the “Other” segment. The SKW Metallurgie Group is headquartered in Germany with production facilities in France, the US (6), Canada, Mexico, Brazil, South Korea, Sweden, Russia, Bhutan, the People’s Republic of China (2) and India (2 via joint venture). At the existing site in Brazil, a new production plant is under construction.

Shares of SKW Stahl-Metallurgie Holding AG have been listed in Frankfurt Stock Exchange’s Prime Standard since December 1, 2006 with ISIN DE000SKWM013 (since August 15, 2011: New ISIN DE000SKWM021), and have been included in the SDAX index from June 23, 2008.

DISCLAIMER

This press release contains statements on future developments that are based on currently available information and involve risks and uncertainties that could cause the actual results to differ from these forward-looking statements. These risks and uncertainties include, for example, unpredictable changes in political and economic conditions, particularly in the steel and paper industry, the competitive situation, interest and currency risks, technological development as well as other risks and unexpected circumstances. SKW Stahl-Metallurgie Holding AG and its Group companies accept no obligation to update such forward-looking statements.

• Growth in revenues by 14% to € 324.7 mill. after nine months
• EBITDA augments by 16% to € 25.8 mill.
• Optimism for further growth in 2012 despite increasing uncertainties

Unterneukirchen (Germany). The SDAX-quoted specialty chemicals Group SKW Metallurgie remains on a profitable growth track after the first three quarters of 2011. To an increase in revenues by 14% to € 324.7 mill. (9M-2010: € 285.2 mill.) led the acquisition of a calcium carbide plant in Sweden as well as the economic environment – which has remained positive despite increasing macroeconomic uncertainties – in the general economy and especially in the steel industry, which is of particular importance for the Group. EBITDA was improved by 16% to € 25.8 mill. (9M-2010: € 22.3 mill.). The period under review was influenced by extraordinary effects: On the one hand, the acquisition of a plant in Sweden led to a positive valuation effect of € 2.6 mill.; on the other hand, its integration caused significant start-up costs. Corresponding negative effects had also to be borne until the end of the third quarter for the production sites in Bhutan and Russia, where production had commenced in the middle of the year. On top, an extraordinary loss in the amount of € 0.8 mill. occurred due to a fraud case related to a raw material purchase in China. Moreover, the profits of the previous year entailed a positive net currency effect of € 1.3 mill., whereas for the year 2011 a negative effect of € 0.4 mill. has been recorded so far. Should the uncertainties, which are currently increasing, not deteriorate further, the Group remains optimistic to reach the announced goals for 2011 and 2012.

“If the environment does not deteriorate further, SKW Metallurgie is on track to reach the targets for 2011. The new plants in Bhutan and Russia develop as planned and will yield a significant earnings impact in 2012. Therefore, our current view remains optimistic in spite of the global uncertainties“, says the CEO of the Group, Ines Kolmsee.

EPS improved by 39%

In spite of the quoted burden from personnel and material expenses, the SKW Metallurgie Group could slightly improve its EBITDA margin from 7.8% to 7.9%. Concerning EBIT, the Group records a plus of 19% to € 16.0 mill. after three quarters. After taxes and minorities, the Group reached a profit growth of 39% to € 8.0 mill., resulting in an EPS of € 1.22 (9M-2010: € 0.88). Looking at the segments, Cored Wire records a growth in revenues by 13% to € 153.1 mill., whereas the EBITDA – due to start-up expenses in Bhutan and Russia as well as an adapted product mix – at € 7.8 mill. did as expected not reach the high 2010 figure (€ 9.1 mill.). Despite the fraud case in China, the segment Powder and Granules developed dynamically. Here, revenues increased by 11% to € 148.4 mill. and EBITDA by 21% to € 19.3 mill.

Solid balance sheet structure despite high growth-related investments

As already in the first half of the year, balance sheet and cash flow after nine months were coined by the strong growth and expansion of the Group. Working capital increased by € 3.3 mill. driven by high demand in all operative branches. To secure future growth potential, the Group in the first nine months invested € 26.7 mill., thereby about € 9 mill. more than in the comparable period of the previous year. Required finance was realized by taking on debt. However, net financial debt could be reduced, as announced, by Sept. 30, 2011 at € 67.8 mill., compared to the half-year figure 2011 (€ 71.5 mill.). In spite of the strong investment activity, the Group continues to command a very solid balance sheet structure. The equity ratio stands at 40.1% (December 31, 2010: 44.3%), Gearing – defined as net financial debt divided by equity – at 0.55 (December 31, 2010: 0.39). Gross cash flow after nine months 2011 reached € 13.0 mill., thereby roughly the figure of the previous year (9M-2010: € 13.7 mill.).

Good conditions for profitable growth in 2012 despite increasing economic uncertainties

Uncertainties regarding the impact of the financial crisis onto the real economy have significantly increased in the last three months, and by now most experts assume a slow-down of the global economy. Nevertheless, the SKW Metallurgie Group maintains with no changes its basically positive assessment concerning the growth potentials of the Group. Under the assumption of an at least stable development of the global economy and in particular of steel production, which is of particular relevance for SKW Metallurgie, the Executive Board confirms its forecast for fiscal years 2011 und 2012.

The IMF remains cautiously optimistic for the development of the global economy in 2012. The sectoral experts at the Worldsteel Association hold similar assessments regarding steel demand in the year to come. Should those prognoses come true, the SKW Metallurgie Group forecasts for the coming fiscal year a significant growth in revenues and profit. That optimism is supported by the expected contributions from the new plants in Bhutan, Russia and Sweden, as well as the expanded production site in Brazil. In Bhutan, calcium silicon meeting highest quality standards is now being produced. Since investments in 2012 will be significantly lower, the free cash flow should rise markedly and be employed to reduce Group debt as well as to propose an attractive dividend.

The report on the first nine months of 2011 as well as further information on the Group may be found on this the web site.

Contact

SKW Stahl-Metallurgie Holding AG
Christian Schunck
Head of IR and Corporate Communications
Prinzregentenstrasse 68
81675 Muenchen
Germany

Direct line IR/Press: +49 89 5998923-22
Fax: +49 89 5998923-29

E-mail: schunck@skw-steel.com
Internet: www.skw-steel.com

About SKW Stahl-Metallurgie Holding AG

SKW Metallurgie is the global market leader for chemical additives for hot metal desulphurization, and for cored wire used in secondary metallurgy. The Group’s products enable steel-makers to efficiently manufacture high-quality steel products. Clients include the world’s leading companies in the steel industry. The SKW Metallurgie Group has more than 50 years of metallurgical know how, and currently operates in more than 40 countries. What is more, the Group is a leading supplier of Quab specialty chemicals, which are mainly used in the global production of industrial starch for the paper industry. The company’s operating business is broken down into the two core segments “Cored Wire” and “Powder and Granules”, and the “Other” segment. The SKW Metallurgie Group is headquartered in Germany with production facilities in France, the US (6), Canada, Mexico, Brazil, South Korea, Sweden, Russia, Bhutan, the People’s Republic of China (2) and India (2 via joint venture). At the existing site in Brazil, a new production plant is under construction.

Shares of SKW Stahl-Metallurgie Holding AG have been listed in Frankfurt Stock Exchange’s Prime Standard since December 1, 2006 with ISIN DE000SKWM013 (since August 15, 2011: New ISIN DE000SKWM021), and have been included in the SDAX index from June 23, 2008.

DISCLAIMER

This press release contains statements on future developments that are based on currently available information and involve risks and uncertainties that could cause the actual results to differ from these forward-looking statements. These risks and uncertainties include, for example, unpredictable changes in political and economic conditions, particularly in the steel and paper industry, the competitive situation, interest and currency risks, technological development as well as other risks and unexpected circumstances. SKW Stahl-Metallurgie Holding AG and its Group companies accept no obligation to update such forward-looking statements.

Key figures SKW Stahl-Metallurgie Holding AG

(in € mill.)

9M-2011 9M-2010    Change        

Sept. 30, 2011 Dec. 31, 2010

1) Relates to number of shares of 6,544,930            2) Net financial debt by equity (incl. non-controlling interests)