Corporate News from 30 September 2020

HMS Bergbau AG: Solid first six months 2020

- Total output: EUR 129.5 million (previous year: EUR 117.2 million)

- EBITDA: EUR 553 thousand (previous year: EUR 680 thousand)

- Expansion of trading acitivities

- Equity ratio as at 30 June 2020 at 36 per cent

Berlin, 30 June 2020: The Management Board of HMS Bergbau AG, one of the leading independent raw materials marketing and trading companies in Germany, today published the financial statements for the first six months of 2020.

The revenue situation of the HMS Group in the first half of 2020 was stronger than in the same period of the previous year. Sales increased 11 per cent from EUR 117.2 million to EUR 129.5 million. EBITDA in the January through June 2020 period amounted to EUR 553 thousand compared to EUR 680 thousand in the first six months of 2019. Net profit for the period amounted to EUR 121 thousand as at 30 June 2020 compared with EUR 319 thousand in the first half of 2019, despite the investments in the development of international structures and personnel. Total assets of HMS Bergbau AG as at the 30 June 2020 reporting date amounted to EUR 43.2 million, which is roughly EUR 7.9 million lower than the level as at 31 December 2019 (EUR 51.1 million). The significant reduction in receivables with a simultaneous reduction in current liabilities was primarily due to reporting date related effects. With shareholders' equity almost unchanged at EUR 15.0 million as at 30 June 2020 (31 December 2019: EUR 15.3 million), the equity ratio as at the reporting date improved significantly from 31 per cent to a current 36 per cent.

Even with sharper price competition and a steep drop in prices, management was able to continue to increase turnover in the reporting period in addition to solidifying business relationships and concluding new contracts. The Company also continued its strategy of expanding trading activities to include other raw materials such as ores (e.g. chrome, lithium or manganese ores), cement products and oil products. The international coal business, however, continued to play the dominant role in operations, accounting for around 90 per cent of trading volumes, particularly in Asia and Africa.

Despite the global economic impact of the measures taken to combat the coronavirus, the HMS Group is looking forward to positive developments in the energy markets along with a steady increase in world energy consumption. Important markets for HMS Bergbau AG such as China, Indonesia and India will continue to be significant consumers of coal. Coal tends to offer these countries flexible electricity production and supply, which allows for the achievement of more prosperity and economic growth. Nevertheless, a reduction in the global raw materials business of around 10 per cent is expected for 2020.

In the current economic environment, however, it continues to be difficult to make reliable short-term plans regarding the Company's business development. In the medium term, however, the management of HMS Bergbau AG considers the prospects to be promising. Its international positioning and steadily growing range of services should enable it to generate better results and higher sales volumes in the future. In its operating activities, HMS Bergbau AG is not only in agreement with the Paris Climate Convention, but will also continue to make an active contribution to climate protection by supporting international climate protection projects. The fundamental prerequisites for the plans of HMS Bergbau AG are the existence of relatively free markets without major trade restrictions and the successful containment of the corona pandemic.

The Management Board

About HMS Bergbau AG:

Berlin-based HMS Bergbau AG is one of the leading independent raw materials marketing and trading companies in Germany, specialising in the international purchase and sale of coal and other raw materials such as ores (e.g. chrome, lithium or manganese ores), cement products and oil products. Its customers include renowned energy producers and other industrial consumers worldwide, with whom it works closely to provide raw materials. HMS Bergbau AG is active primarily in Asia, Africa and Europe and also develops first-class raw material resources. Through its Polish subsidiary Silesian Coal International Group of Companies S.A., the company also has licences to explore coal reserves in Silesia. HMS Bergbau AG also handled complex transport solutions for its customers. The company was established in 1995 and is listed on Germany's Frankfurt Stock Exchange in the Basic Board segment.