HUNTER DOUGLAS RESULTS FIRST HALF YEAR 2019

HUNTER DOUGLAS RESULTS FIRST HALF YEAR 2019

Rotterdam, August 7, 2019 – Hunter Douglas, the world market leader in window coverings (Luxaflex®) and a major manufacturer of architectural products, results for the first half year 2019:

Sales: USD 1,723.6 million, 3.8% lower, compared with USD 1,792.6 million in the first half of 2018.

The 3.8% sales decrease reflects a 1.2% volume increase, a 3.5% negative currency impact, a 2.2% increase from acquisitions and a 3.7% decrease from divestments. Volume increased in Europe and Latin America, was level in North America and lower in Asia and Australia.

North America accounted for 47% of sales, Europe 40%, Asia 5%, Latin America 4% and Australia 4%. Window Coverings were 90% and Architectural Products were 10% of sales.

Earnings before interest, tax, depreciation and amortization - EBITDA: USD 228.4 million, 7.9% higher than USD 211.7 million in the first half of 2018.

Income from Operations:
USD 163.3 million, 1.4% higher than USD 161.0 million in the first half of 2018. Results in local currencies were higher in all areas, except in North America where results were lower.

Profit before Tax: USD 160.8 million, 2.7% higher than USD 156.6 million in the first half of 2018.

Total Net Profit: USD 125.1 million (per share EUR 3.17), 2.0% higher than USD 122.7 million in the first half of 2018 (per share EUR 2.93).

Capital expenditures were USD 54 million compared with USD 67 million in the first half of 2018, while depreciation was USD 56 million compared with USD 40 million in the first half of 2018. For the full year capital expenditures are expected to be approximately USD 125 million and depreciation USD 110 million.

Operating cash flow: USD 134 million compared with USD 68 million in the first half of 2018.

Shareholder’s equity was USD 1,567 million, compared with USD 1,515 million at the end of 2018, reflecting the first half year results, increased by a positive exchange translation and offset by the payment of the dividend of EUR 2.00, totalling USD 79 million.RONAE (Return before interest/net assets employed) was 14.3% compared with 12.9% in the first half of 2018.

IFRS accounting standards effective as from 2019
The Company adopted IFRS16 – Leases by applying the modified retrospective approach as from 1 January 2019.

Q2 2019

Q2 Sales: USD 940.0 million, 3.5% lower than USD 974.2 million in the same period of 2018. The decrease reflects a 0.5% volume increase, a 3.0% negative currency impact, a 2.9% increase from acquisitions and a 3.9% decrease from divestments. Second quarter organic sales were higher in Europe and Latin America, level in North America and lower in Asia and Australia.

Q2 Earnings before interest, tax, depreciation and amortization – EBITDA:
USD 146.8 million, 3.6% higher than USD 141.7 million in Q2 2018.

Q2 Income from Operations: USD 117.3 million compared with USD 116.9 million in Q2 2018. Results in local currencies were better in all areas, except in North America where results were lower.

Q2 Profit before Tax: USD 117.8 million, 1.6% higher than USD 116.0 million in Q2 2018.

Q2 Total Net Profit: USD 90.6 million (per share EUR 2.30), compared with USD 89.6 million in Q2 2018 (per share EUR 2.15).

First half year 2019 by Region

Europe
European sales were USD 688 million, 5% lower than USD 728 million in the same period last year. This reflects a 4% volume increase, a 6% negative currency impact, a 3% increase from acquisitions and a 6% decrease from divestments.

North America
North American sales decreased by 3% to USD 811 million. The sales decrease reflects level volume and a 3% decrease from divestments.

Latin America
Latin American sales were USD 77 million, 5% lower than USD 81 million in the same period last year. The sales decrease reflects a 6% volume increase and a 11% negative currency impact.

Asia
Asian sales decreased by 11% to USD 86 million. The lower sales reflect a volume decrease of 8% and a 3% negative currency impact.

Australia
Australian sales were USD 62 million, 24% higher than USD 50 million in the same period last year. The sales increase reflects a 2% volume decrease, a 6% negative currency impact and a 32% increase from acquisitions.

Outlook
Hunter Douglas expects continued but slower growth in the US, Europe and Asia, and improving economic conditions in Latin America.

Hunter Douglas is in a strong position in terms of its brands, products, distribution and finances.

Profile Hunter Douglas
Hunter Douglas is the world market leader in window coverings and a major manufacturer of architectural products. The Company has its Head Office in Rotterdam, the Netherlands, and a Management Office in Lucerne, Switzerland. The Group is comprised of 135 companies with 48 manufacturing and 87 assembly operations in more than 100 countries. Hunter Douglas employs about 24,000 people and had sales in 2018 of USD 3.6 billion.

The common shares of Hunter Douglas N.V. are traded on Amsterdam’s Euronext and the Frankfurter Börse.

The consolidated first half year report, prepared in accordance with IAS 34, is available on our website www.hunterdouglasgroup.com.

For further information:
Leen Reijtenbagh
Chief Financial Officer
Tel. +31 10 486 9582
E-mail : l.reijtenbagh@hdnv.nl
Website: www.hunterdouglasgroup.com

A consolidated Statement of Income for the first half year and Q2 (Annex 1+2), Balance Sheet (Annex 3), Cash Flow Statement (Annex 4) and Sales change attribution percentages by geographic region for the first half year and Q2 (Annex 5) are attached.