Paul Hartmann : Quarterly Information 2020 Q3

Inform

Information for our shareholders for the third quarter of 2020

A strong signal from the initiative "Mission: Infection Prevention". To show its support of the "World Day of Patient Safety", HARTMANN lit up its production facility in Herbrechtingen in orange - the color designated by the World Health Organization.

• Inform for the third quarter of 2020 | To our shareholders

Contents
To our shareholders	2
At a glance	3
Business development	4
Outlook	5
HARTMANN share	6
The transformation of the healthcare market:
COVID-19 accelerates existing trends	7
News from the HARTMANN GROUP	9
Data protection information	11
Imprint	12

Dear shearholders, ladies and gentlemen,

In the third quarter, there was still no return to normality in HARTMANN's sales markets. Due to the strong increase in COVID-19 infections since September, the HARTMANN core segments are facing significant challenges. On the one hand by a temporary strong increase in demand for disinfectants and personal protective equipment, which the company is already meeting in the best possible way through measures to expand production capacities and secure supply chains. On the other hand, by the delay of non-urgent surgeries, which results in a decline in sales for sterile surgical products and other product groups in Wound Management.

Due to stronger positive than negative effects of the COVID-19 pandemic, HARTMANN achieved overall organic sales growth of 15.4% and a significant improvement in earnings in the first nine months. The main driver for this was the extraordinary growth in Infection Management.

In the fourth quarter, the positive effects are anticipated to continue to clearly outweigh the negative effects. Based on the trend of business in 2020 to date and based on the forecasts, HARTMANN has raised its outlook for the current fiscal year. The company now anticipates adjusted EBITDA of EUR 280 to EUR 320 million and continues to expect strong organic sales growth.

Due to the unclear further course of the global COVID-19 pandemic and its economic consequences, the future outlook remains highly uncertain. HARTMANN expects that the positive special effects will be less pronounced than in the exceptional year of 2020 and that negative effects can still be expected. It therefore remains a priority for the company to consistently pursue the transformation program launched in 2019. The execution of the transformation program and the effects of the coronavirus pandemic are expected to result in a negative impact on sales and earnings in the following year.

Kind regards, and please take care!

Britta Fünfstück

Inform for the third quarter of 2020 | At a glance

3

The HARTMANN GROUP is one of the leading European providers of professional medical and care products and associated services. Every day, healthcare professionals and patients rely on HARTMANN brands in the core segments

of Incontinence Management (e. g. MoliCare®), Wound Management

(e. g. Zetuvit®) and Infection Prevention (e. g. Sterillium®) to improve users' health and well-being. In 2019, HARTMANN achieved sales of EUR 2,187 million. Founded in 1818, the company is present with its products and solutions

in 130 countries around the world. For the future, the HARTMANN GROUP is currently implementing its strategic Transformation Program with its high- performance, customer-oriented and passionate team.

Would you like stay up-to-date information on HARTMANN? Follow us at www.hartmann.info, on LinkedIn or Facebook.

Key performance indicators of the HARTMANN GROUP as of September 30

in EUR million	2020
Rounding discrepancies not balanced out
Sales revenues	1,819.9
of which outside Germany in %	65.1
Organic sales growth in %	15.4
Adjusted EBITDA	207.1
Return on adjusted EBITDA in %	11.4
Equity ratio in %	57.0
Net financial position	133.3

• Inform for the third quarter of 2020 | Business Development for the third quarter of 2020

Business Development for the third quarter of 2020

Share of total sales by business segment in EUR million and percent

Wound Management

337.0 | 18.5%

Incontinence Management

517.6 | 28.4%

Infection Management

630.8 | 34.7%

Other Group Activities

334.6 | 18.4%

Share of total sales by region in EUR million and percent

Germany

635.4 | 34.9%

Europe excluding Germany 1,025.0 | 56.4%

America

40.5 | 2.2%

Africa, Asia, Oceania

119.0 | 6.5%

Coronavirus pandemic continues to affect organic growth

In the first nine months of 2020, the HARTMANN GROUP's business development remained heavily influenced by global efforts to fight the coronavirus pandemic and the associated measures taken by national healthcare systems.

As far as HARTMANN's business performance in 2020 is concerned, the positive effects have so far clearly outweighed the negative ones. As a result, the company achieved strong organic sales growth of 15.4% overall in the first nine months of 2020. The sales revenues of all business segments were at a total of EUR 1,820 million (previous year: EUR 1,615 million).

Compared to a normal fiscal year, the sales development reflects a considerable increase in demand for hand disinfectants, as well as medical personal protective equipment. In order to meet the very high customer demand to the greatest possible extent, HARTMANN has already ramped up its disinfectant production and set up facilities for the production of face masks in Germany. Furthermore, supply chains were expanded and investments were made in additional quality assurance.

Negative effects of the pandemic came from the requirement of hospitals to reserve intensive care beds for COVID-19 patients, which resulted in a decrease in non-urgent surgeries, as well as a reduced number of visits to doctors and pharmacies. This had a particularly negative impact on the demand for customized surgery kits and dressing materials.

Wound Management sales remain impaired In the Wound Management segment, HARTMANN

recorded sales revenues of EUR 337 million from January to September 2020. The retention of hospital capacities, postponed surgeries and a lower frequency of visits to doctors and pharmacies led to an overall organic sales decline of 4.6% as compared to the same period of the previous year. The negative trend slowed down somewhat in the third quarter. On a nine-month comparison, sales of classic dressing materials, such as fixation and compression bandages or plasters, was the most affected by the decline. Modern wound treatment concepts and superabsorbent wound dressings with innovative product solutions, such as Zetuvit® Plus Silicone Border, experienced more positive developments.

In the Incontinence Management segment, sales revenues amounted to EUR 517.6 million, representing a slight organic sales increase of 0.2% for the entire period under review. Encouraging growth momentum once again came from incontinence solutions for active people, such as MoliCare® Mobile, and skin care products under the MoliCare® Skin brand.

The Infection Management segment recorded sales of EUR 630.8 million in the first nine months of 2020, making it the HARTMANN GROUP's strongest segment in terms of sales due to the pandemic. Organic growth was at 64.4%. Demand remained considerable for hand disinfectants, as well as for personal protective equipment like masks and examination gloves. In contrast, sales of customized surgical procedure trays declined significantly due to postponed surgeries.

Sales in the Other Group Activities segment totaled EUR 334.6 million after nine months, for an organic sales growth of 3.5%. The KNEIPP Group, in particular, continued to profit from the trend towards greater health awareness. The negative effects of the pandemic, such as the decrease in surgeries, resulted in declining sales for the Group companies KOB and CMC Medical Care.

Inform for the third quarter of 2020 | Business Development for the third quarter of 2020 | Outlook

5

Above-average growth in Germany

Although sales in Northern Europe declined, as well as in the region of Africa, Asia, Oceania, the HARTMANN

Number of HARTMANN GROUP employees declines due to sale of SANIMED

GROUP achieved strong organic sales growth of 11.2% in the rest of Europe (excluding Germany). This was mainly driven by customer sales in the regions of Central Europe and Western/Southern Europe. Driven by the extraordinary effects of COVID-19, the core sales market Germany reported a growth rate of 30.3% as compared to the same period of the previous year - a disproportionately high contribution to the strong organic sales growth. As a result, the proportion of sales to customers outside Germany decreased by two percentage points to approx. 65%.

Adjusted EBITDA shows significant growth

In financial year 2020, adjusted EBITDA became the key performance indicator of the HARTMANN GROUP's earnings performance. This important external and internal performance indicator offers the advantage of not being burdened by special effects. It therefore adequately reflects the underlying business performance. Adjusted EBITDA amounted to EUR 207.1 million as of September 30, 2020 and the adjusted Return on EBITDA was 11.4%.

Further improved financial position

The strong sales development in 2020 led to a significant increase in cash and cash equivalents. As a result, a significantly improved net financial position of EUR 133.3 million was achieved at the end of September.

At the end of September 2020, the equity ratio was at 57.0% and thereby slightly above the solid level of the previous year (55.9%).

	11,096
1,000	10,644
	972
5,209	5,334
4,887
	4,338
December 31,	September 30,
2019	2020

Effect due to the sale of

SANIMED

• Outside Europe
• Europe excluding Germany
• Germany

Number of employees affected by sale of

SANIMED

As of September 30, 2020, the HARTMANN GROUP employed 10,644 people worldwide. This represents a decline of 450 people or around 4% of the workforce as compared to the end of 2019. This was mainly due to the sale of the SANIMED Group. As of the reporting date, 4,338 were employed in Germany, and 6,306 at company locations abroad. As a result, the ratio of employees in Germany and abroad remained unchanged at 40.8% to 59.2%.

Outlook

HARTMANN adjusts its forecast for 2020 Based on the latest industry forecasts, HARTMANN assumes that the significant increase in demand for individual product groups, such as disinfectants and personal protective equipment, will also result in positive temporary effects for the fourth quarter. Negative effects of the coronavirus pandemic mainly result from the postponement of non-urgentsurgeries and the resulting decline in business from sterile surgical products, as well as product groups in the Wound Management segment. This results in the underutilization of production capacities in the Wound Management segment. For the year as a whole, the positive effects on HARTMANN's sales and earnings development are expected to significantly overcompensate for the negative effects.

On this basis, the PAUL HARTMANN AG Management Board decided to once again raise the outlook for fiscal year 2020, which had already been raised in August 2020. According to the Management Board, HARTMANN now expects an adjusted EBITDA of EUR 280 to EUR 320 million for 2020 and continues to anticipate strong organic sales growth in the current fiscal year.

• Inform for the third quarter of 2020 | HARTMANN share

HARTMANN share

Performance of the HARTMANN share price compared to EURO STOXX 50

September 30, 2019 (= 100 percent) to September 30, 2020 in percent

120

113.5

110
100
90
										89.5
80
70
S	O	N	D J	F	M A	M	J	J	A	S
2019			2020

• PAUL HARTMANN AG
• EURO STOXX 50

Performance of the HARTMANN share

The closing price of the HARTMANN share on the Frankfurt Stock Exchange at the end of September 2020 was EUR 336 per share, EUR 54 higher than the year-end price for 2019 (EUR 282).

Basic information on the HARTMANN share

WKN	747404
ISIN	DE0007474041
Exchange	Frankfurt Stock Exchange
Segment	Open Market
Type of share	Registered unit shares held in collective safe custody
Capital stock	EUR 91.3 million
Number of shares	3,572,424 units,
	of which 20,682 units are held as own shares

Due to the unclear further course and economic consequences of the global coronavirus pandemic, the outlook remains highly uncertain. At present, HARTMANN assumes that the predominantly positive special effects in individual product groups will be less pronounced than in the exceptional year of 2020. Negative effects during and especially after the coronavirus pandemic on HARTMANN's performance are to be expected, among other things increased budgetary pressure on healthcare systems. For the HARTMANN GROUP, it is therefore a priority to consistently pursue further implementation of the transformation program launched in 2019. The associated investment requirements in combination with the aforementioned effects of the coronavirus pandemic are likely to have a negative impact on sales and earnings in the following year.

2021 Annual General Meeting format not yet determined

The latest developments of the coronavirus pandemic show that it is too early to make sensible decisions regarding the planning of in-person events. In response, the German government has extended regulations that call for virtual annual general meetings until the end of 2021.

PAUL HARTMANN AG has not yet decided upon the format of the next ordinary Annual General Meeting. Apart from the legal obligation to hold an annual general meeting, the decision will primarily focus on the health of everyone involved as well as compliance with official regulations.

We will keep you informed of new details as they arise, but we ask you to plan for the date of

Friday, April 30, 2021.

The HARTMAN Shareholder Portal:

Take advantage of the new online service for shareholders

The Shareholder Portal offers a variety of services and functions for shareholders in a sustainable format. Shareholders can register for the electronic version of the quarterly reports and register for an electronic invitation to the Annual General Meeting. They can also easily register in advance of the next PAUL HARTMANN AG Annual General Meeting online using the Shareholder Portal. By doing so, shareholders can opt out of paper mailings and make a personal contribution to protecting the environment. Shareholders can quickly and easily review their contact information and shareholdings with a click.

We encourage our shareholders to take advantage of this opportunity. https://investor.computershare.de/ paul-hartmann#/login

Inform for the third quarter of 2020 | News from the HARTMANN GROUP 7

The transformation of the healthcare market: COVID-19 accelerates existing trends

The healthcare industry is generally considered one of the economy's more resilient sectors. However, COVID-19 now poses new and familiar challenges for healthcare systems, while accelerating the trends of recent years. The pandemic marks both a turning point and acts as driver in a rapidly changing market. The following interview with Management Board member François Georgelin goes into the most important developments. It makes it clear that, for key market participants, bold change processes are essential. Fortunately, HARTMANN has already made significant progress through its strategic transformation. The key to success now lies in implementing the program consistently.

In dialogue with

François Georgelin,

Member of the

Board

Editor: What would you currently consider the biggest challenge for the healthcare market?

Georgelin: All of this change originates from pressure throughout the payers to reduce costs in healthcare, which have been increasing for decades. That's nothing new. The pressure comes as a result of constrained budgets, a consistent increase in the demand for treatments and the growing cost of innovative technologies. Demographic changes as well as improved access to medical care also play an important role. Due to

COVID-19, however, the picture has become even more dramatic. Healthcare expenditure has exploded inter- nationally, leading to foreseeable cost reductions in this area. In Germany, one of our key markets, more than half of all hospitals expect to run a deficit in the current fiscal year, similar situations apply in most of our markets. Inevitably, such circumstances will impact suppliers such as HARTMANN. COVID-19 represents not only a turning point for healthcare markets, but also acts as an accelerator of existing trends.

• Inform for the third quarter of 2020 | News from the HARTMANN GROUP

Editor: You speak of far-reaching effects on companies like HARTMANN. What are those effects?

Georgelin: Basically, the pressure on prices and margins will continue to increase for the healthcare industry. Due to the constraints on healthcare providers to cut costs, purchasing departments will play an even greater role in the decision-making process for medical products, the importance and the size of the tenders will increase, and the demand for proven cost-efficient technologies and solutions will rise, especially in the digital sector. On the other hand, those footing the bill will increase pressure on innovation funding by requiring stringent clinical and healthcare evidence. We also anticipate that reimbursement models for technologies may present a challenge. For HARTMANN, this generally means that in order to compete and still expand our market share in this difficult economic context, we need to continuously improve our cost position and efficiency. We must also build on our innovative strength and competitiveness.

Editor: Where do you see specific opportunities for HARTMANN to strengthen its competitive position?

Georgelin: As a result of COVID-19 and increasing pressure from institutions to reduce costs, we can expect to see a shift in patient numbers away from inpatient care and towards outpatient care, which includes primary care, assisted living and homecare. While we will continue to have a focus on inpatient care, the out- patient care market will become increasingly important for HARTMANN. Here, we can expand our competitive position with new technologies and solutions specifically geared to the target group. This approach is already anchored in our corporate strategy.

Editor: That will certainly require further investments. Does that conflict with a reassessment of the cost position?

Georgelin: Not at all. The two are mutually dependent on one another. In order to be successful as a healthcare provider in the future, we must now make targeted investments that support the transformation process of our market. In addition, we need to be sure to address the challenges through the angle of a solid cost position and a high degree of proven efficiency.

Editor: In conclusion, would you say that HARTMANN is well positioned to face the changes in the healthcare market?

Georgelin: We are on the right track. First and foremost, due to the quality of the relationship with our customers. Even before the outbreak of the pandemic, we responded to important trends in healthcare by initiating a strategic transformation program. Those trends are now acceler- ating. At an early stage, our attention was focused on an improved cost position, new attractive market seg- ments, such as the outpatient sector, and the development of cost-efficient innovations and digital services. Thanks to this approach that anticipated these trends, we are now prepared to react quickly and effectively to newly emerging challenges and opportunities. I therefore see the transformation program as the essential foundation for HARTMANN. Its consistent implementation must now be our focus.

Inform for the third quarter of 2020 | News from the HARTMANN GROUP 9

News from the HARTMANN GROUP

HARTMANN

a hygiene pioneer: After Paul Hartmann Sr. played a decisive role in the development of the first antiseptic wound dressing in the 19th century, BODE Chemie developed the

first alcohol-based,skin-friendly disinfectant together with surgical physician Dr. Peter Kalmár

in 1965.

A holistic approach for solutions:

Infection prevention initiative to reduce costs in hospitals

The spread of infectious diseases is one of the greatest threats to public health - today more than ever. Nosocomial, or hospital-acquired infections, which occur during inpatient or outpatient medical treatment, are among the most challenging issues for healthcare systems worldwide. According to the World Health Organization (WHO), seven percent of all patients in Europe are affected by nosocomial infections every year. That equates to almost four million people, approximately 80,000 of whom ultimately die. In addition to human suffering, the associated treatment costs of just over seven billion euros per year pose a massive challenge to healthcare systems.

As an essential supplier to the medical sector with an extensive portfolio and many years of expertise in the field of infection protection, HARTMANN has been strengthening its fight against nosocomial infections through its transformation program started back in

2019. As a direct result, the company's Mission: Infection Prevention initiative was communicated to the public in September. It primarily aims to support hospitals and care facilities with a holistic approach to reducing the number of infections transmitted and the associated costs. In the medium to long term, HARTMANN intends to position itself as the leading provider of infection prevention services for this target group in Europe.

The head of the initiative, Thomas Haeni, believes that hospitals will become more sensitized to the topic in the future. "Now more than ever, healthcare companies have no choice but to utilize resources more efficiently. In addition to offering the best possible care for patients, this is largely a matter of supporting medical staff. The current COVID-19 pandemic shows how important it is to protect the staff with the proper equipment and to make their work easier with efficient processes."

This is exactly what Mission: Infection Prevention is all about - creating efficient and effective solutions for customers and being a relevant partner. The initiative also opens up a closer dialogue with decision-makers.In preparation for the project, the experience of over 50 hospital directors and hygiene managers was taken into account and carefully coordinated with evidence-basedinsight from the BODE Science Center, HARTMANN's own scientific competence center.

The goals of the initiative will be achieved with the help of four interconnected components: consultation, digital monitoring, training concepts and product bundling. "Our customers should know that we understand their needs and their individual systems in detail, and that we act as partners with a common goal. Only by working together will we succeed in improving existing processes and breaking risk chains," explains Haeni. "Mission: Infection Prevention is an important component in strengthening HARTMANN's future competitiveness, and it is firmly anchored in the strategic transformation program." Further information can be found at www.missioninfectionprevention.info.

10 Inform for the third quarter of 2020 | News from the HARTMANN GROUP

A computer-based simulation illustrates the highly automated material fl ow and the improved efficiency of the new commissioning process.

Automated commissioning process:

CPT production in the Czech Republic improves efficiency and costs position

At its Veverská Bítýška facility in the Czech Republic, HARTMANN will re-design its customer-specific,pre-packaged Custom Procedure Trays (CPT) to be more efficient, flexible and cost-effective in the future. To that end, the company is now investing in new intralogistics systems developed in the automotive industry. Highly automated processes will accelerate and simplify the flow of materials between various specialist areas. Furthermore, each step in the process can now be handled internally. Implementation will take place over two steps. At the beginning, the buildings designated as "production", "sterilization" and "warehouse" will be connected with each other, followed by the installation of systems that automatically pick and supply materials for production. The following example illustrates the advantages. Up to now, 500 pallets were delivered

manually from the warehouse to the production plant every day. If the loading and unloading of the pallets is taken into account, this corresponds to 1000 actions.

All of this work will be eliminated with the introduction of our new systems.

The project also foresees the reorganization of assembly line production. A more targeted preparation of the set components will enable a smoother transition to new customer orders in the future.

Commenting on the stronger customer orientation, Pavel Fuchs, Managing Director of HARTMANN Czech Republic, summarizes: "The investment will strengthen the competitiveness of the CPT business sustainably. In addition to an improved costs position, we will above all be in a position to serve our customers even more flexibly and efficiently." Implementation is scheduled to begin at the end of 2020, with the new processes slated to commence operation in early 2022.

Inform for the third quarter of 2020 | News from the HARTMANN GROUP 11

Data protection information: quarterly information and annual report of PAUL HARTMANN AG

We automatically send you, the shareholders of the PAUL HARTMANN AG, various information to inform you about the performance of the HARTMANN GROUP and current market developments. This information includes, in particular, financial information, for example, the sending of quarterly information (particularly our shareholder magazine "Inform") and, where you have asked for this to be sent by post, the HARTMANN GROUP's Annual Report.

At the same time, an online version of the quarterly information is available to you on our website https://hartmann.info/en-corp/investor-relations/l/corp/investor-relations under the "Downloads" menu option and in the shareholder portal.

Should you no longer wish to receive the quarterly information and/or the annual report in future, please contact PAUL HARTMANN AG, Investor Relations, P.O. Box 1420, 89504 Heidenheim or via [e-mail]. Should you wish only to receive quarterly information and/or the annual report electronically in future, again, please contact the address specified.

To send you quarterly information and where we send you the annual report, PAUL HARTMANN AG processes your personal data (surname and first name, address, where relevant, shareholder number) as the legal entity, in each case based on legitimate interests (Art. 6(1) sentence 1 letter f) GDPR). Where you do not provide us with your personal data yourself, we normally receive this via your custodian bank.

The service providers engaged by us to send you quarterly information and/or to send you the annual report as requested process your personal data exclusively according to our instructions and only to the extent

this is necessary for the performance of the requested service. All PAUL HARTMANN AG employees and those of our contracted service providers who have access to your personal data and/or process this, are obliged to treat that data as confidential.

We erase your personal data in accordance with the statutory regulations, particularly where the personal data are no longer required for the original purpose of their collection or processing.

Among the legal requirements, you have the right to receive information about your processed data and to request their rectification or erasure or the restriction of processing. In addition, you have a right to lodge a complaint with a supervisory authority.

Among the legal requirements, you may, at any time and without giving reasons for the same, object to any processing of your personal data for the purpose of sending the quarterly information and/or the sending of the annual report.

To do so, please contact PAUL HARTMANN AG, Investor Relations, P.O. Box 1420, 89504 Heidenheim or via [e-mail].

For comments and queries about the processing of personal data, your data protection officer can be reached at:

PAUL HARTMANN AG, Data Protection Officer, Paul-Hartmann-Strasse 12, 89522 Heidenheim, [e-mail].

For further data protection information, please see our

website at https://www.hartmann.info/en-corp/data-protection.

PAUL HARTMANN AG, P.O. Box 1420, 89504 Heidenheim, Germany

Imprint

Publisher

PAUL HARTMANN AG

P.O. Box 1420, 89504 Heidenheim

Germany

Investor Relations

Monika Faber

Phone [phone]

Fax

[phone]

E-Mail:[e-mail]

Public Relations

Jeremy Whittaker (Responsible for content under German press law) Phone [phone]

Fax

[phone]

E-Mail:[e-mail]

Status as of December 10, 2020

This report contains forward-looking statements. Actual results may be different from the ones implied by the forward-looking statements. Rounding discrepancies not balanced out.

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https://hartmann.info/en-corp/investor-relations/l/corp/investor-relations

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