INFORM | First half of 2019

Northern Europe stood out with a double-digit growth. Sales growth in the regions Africa, Asia and Oceania exceeded the average sales growth achieved by the HARTMANN GROUP. Continuing price pressure in the hospital business and lower sales because of inventory reductions in pharmaceutical wholesale meant that Germany lagged behind the dynamics seen in non- domestic markets with a growth by 2.2%. The share of sales outside of Germany increased from 67.4% in the previous year to 67.9%. Increasing raw material cost causes decline in EBIT Earnings before interest and taxes (EBIT) of EUR 53.4 million (previous year: EUR 61.1 million) equate to an EBIT margin of 5.0% compared to 5.9% in the prior year period. The decline reflects the rise in the price of key raw materials, mainly cellulose. The effect was aggravat- ed by an unfavourable exchange rate trend in the first six months compared to the prior year period. In addition, investments in distribution and administration also took their toll. The Group’s net income declined by EUR 5.1 million to EUR 35.9 million. As planned, the net profit margin reached 3.3%, compared to 4.0% in the prior year period. Sound financial position and equity base maintained despite decline in net financial position The net financial position of the HARTMANN GROUP declined by EUR 23.7 million (end of 2018: EUR 104.5 million) in the first six months of 2019. The main reason for this decline compared with the end of 2018 is the first-time adoption of the international accounting standard IFRS 16 and the associated obligation to recognize lease liabilities as financial liabilities in the balance sheet. The equity ratio declined by 4.3 per- centage points to 56.1% as of 30 June 2019 due to a balance sheet extension compared to the previous year. Slight increase in headcount The number of employees increased slightly in the first half of the year across all Group locations. In total, the HARTMANN GROUP had 11,110 employees (end of 2018: 11,027). 43% of the total number of employees was employed in Germany and 57% abroad. The increase in Europe was primarily driven by a headcount expansion at KOB Medical Services GmbH in Germany as well as the increase in production staff in the Czech Republic and additions to the sales team in France. The decline in staff numbers outside of Europe is mainly due to production-related adjustments in India and Australia. Inform in the first half of 2019 | Business Development in the first half of 2019 5 Number of employees of the HARTMANN GROUP Outside Europe Europe excluding Germany Germany June 30, 2019 December 31, 2018 Development of EBITDA, EBIT and consolidated net income of the HARTMANN GROUP as of June 30 in EUR million EBITDA EBIT Consolidated net income 11,110 1,085 5,247 4,778 11,027 1,164 5,114 4,749 2019 100.2 94.0 2018 2019 35.9 41.0 2018 2019 53.4 61.1 2018