Rotterdam, The Netherlands (8 March 2017) - IMCD N.V. ("IMCD" or "Company"), a leading distributor of speciality chemicals and food ingredients, today announces its full year 2016 results.

Highlights
· Revenue growth of 12% to EUR 1,714.5 million (+14% on a constant currency basis)
· Gross profit growth of 15% to EUR 381.6 million (+18% on a constant currency basis)
· Operating EBITA increased by 15% to EUR 147.8 million (+18% on a constant currency basis)
· Net result before amortisation and non-recurring items of EUR 102.6 million (2015: EUR 87.2 million)
· Cash earnings per share increased by 12% to EUR 2.01 (2015: EUR 1.79)
· Dividend proposal of EUR 0.55 in cash per share (2015: EUR 0.44)

Piet van der Slikke, CEO: "We achieved another year of growth by consistently executing our long term strategy of developing the business by organic growth and by selected acquisitions. Our focus on technical expertise and operational excellence and the diversity of our product, market and geographical coverage, contributed to a continued growth of gross profit, EBITA and cash flow in 2016. We believe that our strong business model is well positioned to benefit from mega trends which favour the use of speciality chemicals and innovative food ingredients. For 2017, we are optimistic about our opportunities to further increase value for our business partners and shareholders."

Key figures
EUR million 2016 2015 Change Change
Fx adj.
change
Revenue 1,714.5 1,529.8 184.7 12% 14%
Gross profit 381.6 332.8 48.8 15% 18%
Gross profit in % of revenue 22.3% 21.8% 0.5%
Operating EBITA1 147.8 128.3 19.5 15% 18%
Operating EBITA in % of revenue 8.6% 8.4% 0.2%
Conversion margin2 38.7% 38.5% 0.2%
Net result before amortisation / non recurring
items 102.6 87.2 15.5 18% 20%
Free cash flow3 140.4 119.3 21.1 18%
Cash conversion margin4 92.3% 90.5% 1.8%
Net debt / Operating EBITDA ratio5 2.6 2.9 (0.3) (10%)
Earnings per share (weighted) 1.39 1.20 0.19 16% 23%
Cash earnings per share (weighted)6 2.01 1.79 0.21 12% 14%
Proposed dividend per share 0.55 0.44 0.11 25%
Number of full time employees end of period 1,863 1,746 117 7%
1 Result from operating activities before amortisation of intangibles and non-recurring items
2 Operating EBITA in percentage of Gross profit
3 Operating EBITDA plus/less changes in working capital less capital expenditures
4 Free cash flow in percentage of Operating EBITDA
5
Including full year impact of acquisitions
6 Result for the year before amortisation (net of tax)

Revenue
Revenue increased from EUR 1,529.8 million to EUR 1,714.5 million, an increase of 12% compared to 2015.
This increase was the balance of organic growth (3%), the first time inclusion of acquisitions (11%) and a
negative contribution of foreign exchange differences (-2%).
Organic revenue growth of 3% was the balance of modest macroeconomic circumstances, a further
strengthening of the product portfolio by adding new supplier relationships, expanding relations with existing
suppliers and an increase of customer penetration by adding new products and selling more products to
existing customers.
Acquisitions completed in 2015 and 2016 had a positive impact of EUR 170.7 million on 2016 revenue.
Gross profit
Gross profit, defined as revenue less cost of materials and inbound logistics, increased from EUR 332.8 million
in 2015 to EUR 381.6 million in 2016, an increase of 15%. This increase was the balance of organic growth
(6%), the first time inclusion of acquisitions (11%) and a negative contribution of foreign exchange differences
(-2%).
Gross profit in % of revenue increased from 21.8% in 2015 to 22.3% in 2016. The gross profit in % of revenue
improved in all regions. Gross profit margins showed the normal level of differences in margins per region,
margins per product and margins per product market combination. Differences between regions are caused by
local market circumstances, product mix, product availability and the impact of newly acquired businesses.
The increase of the gross profit % is the result of further optimisation of the product portfolio, the first time
inclusion of acquired companies, local market circumstances, currency exchange rate impacts and the usual
fluctuations in the product mix.
Operating EBITA
Operating EBITA increased by 15% to EUR 147.8 million compared to EUR 128.3 million in 2015 (+18% on a
constant currency basis). The growth in operating EBITA of EUR 19.5 million was a combination of organic
growth, the first time inclusion of acquisitions and a negative impact of exchange differences (EUR -3.3
million).
The operating EBITA in % of revenue increased from 8.4% in 2015 to 8.6% in 2016. The segments EMEA and
Americas increased their EBITA margin in 2016 compared to 2015. In Asia-Pacific there was a little margin
erosion amongst other things due to start-up costs of new activities in Thailand, Vietnam and Japan. The
conversion margin, operating EBITA as a percentage of gross profit, further improved by 0.2% from 38.5% in
2015 to 38.7% in 2016.
Cash flow and capital expenditure
Free cash flow increased by 18% from EUR 119.3 million in 2015 to EUR 140.4 million in 2016. The cash
conversion margin, defined as free cash flow as a percentage of operating EBITDA, improved by 1.8% to
92.3% in 2016, driven by further growth of operating EBITDA combined with lower investment in working
capital.
IMCD's asset light business model resulted in relatively low capital expenditure compared to the size of the
overall operations, amounting to EUR 5.2 million in 2016 compared to EUR 3.2 million in 2015. Capital expenditure mainly related to investments in the ICT infrastructure, office furniture and technical, warehouse
and office equipment.
Working capital
Working capital is defined as inventories, trade and other receivables less trade and other payables. As at the
end of 2016 the absolute amount of working capital was EUR 248.4 million compared to EUR 227.8 million as
at year end 2015. The increase of EUR 20.6 million is the result of a combination of increased business activity
leading to higher working capital levels (EUR 4.8 million), impact of exchange rate differences on year end
balance sheet positions (EUR 6.2 million), acquisitions (EUR 9.9 million) and other working capital movements
(EUR -0.3 million). Monitoring working capital positions is a permanent focus of management attention and
there are various processes and tools in place to optimise working capital requirements.
Net debt and equity
Net debt amounted to EUR 397.6 million at year end 2016, compared to EUR 437.5 million as at year end
2015. The decrease in net debt is predominantly the result of positive and healthy cash flows from operating
activities, set off by cash outflows as a result of acquisition related payments and a dividend payment of EUR
23.1 million. Furthermore, net debt includes approximately EUR 61.5 million deferred contingent
considerations related to acquisitions made, of which the majority was paid 1 March 2017.
In October 2016 an amendment to IMCD’s EUR 500 million syndicated banking facilities was agreed. The
amendment comprises an extension of the term of the existing credit facility by one year to 2021. Further, the
amendment resulted in a reallocation of part of the term facilities into revolving facilities, resulting in a term
facility of EUR 200 million (previously EUR 350 million) and a revolving facility of EUR 300 million (previously
EUR 150 million). In addition, the amended terms include a fixed leverage covenant of 3.5 with an acquisition
spike, whereby the leverage may be increased twice to 4.0 during the remaining life of the facilities.
Following the amendment of the syndicated banking facilities, a debt capital market issuance of EUR 100
million and USD 90 million with a tenor of 5 and 7 years was closed. The proceeds of this debt capital market
issuance were used to repay revolving facilities.
The reported leverage ratio (net debt/operating EBITDA ratio including full year impact of acquisitions) as at
the end of December 2016 was 2.6 times EBITDA (31 December 2015: 2.9). The leverage ratio calculated on
the basis of the definitions used in the loan documentation was 2.3 times EBITDA (31 December 2015: 2.5)
which is well below the defined maximum of 3.5 times EBITDA.
The equity attributable to the holders of ordinary shares increased by EUR 68.3 million to 722.1 million
(31 December 2015: EUR 653.8 million). This increase mainly resulted from the addition of the net profit for the
year of EUR 73.0 million and total other comprehensive income for the year of EUR 19.0 million, partially offset
by dividend payments in cash of EUR 23.1 million in May 2016. The increase of equity resulted in a solid
equity-to-assets ratio of 48.7% as at the end of 2016 (31 December 2015: 45.6%).
Result for the year
Result for the year increased by 18% to EUR 73.0 million (2015: EUR 61.8 million). The weighted earnings per
share increased from EUR 1.20 in 2015 to EUR 1.39 in 2016 (+16%).
The net result before amortisation and non-recurring items increased from EUR 87.2 million in 2015 to EUR
102.6 million in 2016, mainly driven by the growth of the operational result. Weighted cash earnings per share, calculated as net result before amortisation (net of tax), increased from EUR 1.79 in 2015 to EUR 2.01 in 2016
(+12%).
Dividend proposal
For 2016, a dividend of EUR 0.55 per share (2015: EUR 0.44) in cash will be proposed to the Annual General
Meeting. Approval at the Annual General Meeting would result in IMCD paying EUR 28.9 million or 28% of the
net 2016 result adjusted for (non-cash) amortisation charges, net of tax.
Developments by operating segment
The reporting segments are defined as follows.
• EMEA: all operating companies in Europe, Turkey and Africa
• Asia Pacific: all operating companies in Australia, New Zealand, India, China, Malaysia, Indonesia,
Philippines, Thailand, Singapore, Vietnam and Japan
• Americas: all operating companies in the United States of America, Brazil and Puerto Rico
• Holding companies: all non-operating companies, including the head office in Rotterdam and the regional
offices in Singapore and New Jersey, US.

Outlook
IMCD operates in different, often fragmented market segments in multiple geographic regions, connecting
many customers and suppliers across a very diverse product range. In general, results are impacted by
macroeconomic conditions and developments in specific industries. Furthermore, results can be influenced
from period to period by, amongst other things, the ability to maintain and expand commercial relationships,
the ability to introduce new products and start new customer and supplier relations and the timing, scope and
impact of acquisitions. IMCD’s consistent strategy and resilient business model has led to successful
expansion over the years and IMCD remains focused on achieving earnings growth by optimising its services
and further strengthening its market positions.
IMCD sees interesting opportunities to increase its global footprint and expand the product portfolio organically
and by acquisitions.

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