euro adhoc: HTI - High Tech Industries AG / Financial Figures/Balance Sheet / HTI DEVELOPS INTO A TECHNOLOGY GROUP, INCREASING SALES BY 33.4% (E)

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13.08.2008

HTI DEVELOPS INTO A TECHNOLOGY GROUP, INCREASING SALES BY 33.4%

Sales increased 33.4% to TEUR 99,778 - EBITDA: +4.8% to TEUR 8,826 - EBIT:
+2.7% to TEUR 3,335 - successful acquisition of HTP Skinline, Theysohn,
Technoplast and Hitzinger - Restructuring of automotive activities in the
Plastics Processing segment due to economic downturn - 2008 sales target: about
EUR 200 million

St. Marien, August 14, 2008 - The first six months of the current 2008 business
year of HTI High Tech Industries AG were characterized by an intensive phase of
strategic acquisitions. Furthermore, the founding of the Romanian subsidiary for
mold production is a further step which lays the groundwork for dynamic organic
growth, driving the expansion of HTI Group to the Eastern European growth
markets.

Peter Glatzmeier, Chairman of the Management Board of the HTI Group, commented
on the first half of 2008: "We are gratified at the record level of sales and
the successful conclusion of our acquisitions. On the basis of these takeovers,
we have achieved a future-oriented positioning of the company. As an
international technology group with core markets in lightweight construction,
engineering and energy technology, we have created a solid basis for our future
business development. Moreover, we have reacted in a timely manner to the global
economic slowdown in the automobile industry, and already initiated a project to
restructure HTP Automotive in the first half of 2008. The measures to be
implemented call for transferring the production of automotive components to our
Eastern European plants in Slovakia and Romania. At the same time, our
production sites in Austria and Germany will be redimensioned. This project is
expected to be completed by the end of 2008, in order to ensure a positive
effect on earnings in the 2009 business year. Additional earnings potential will
be exploited by the consolidation of production in the Metals Processing segment
at one site. This bundling of our manufacturing capabilities will create an
annual cost savings potential of about EUR 4 million, which will be leveraged
starting in the 2009 business year. We expect sales of about EUR 200 million in
2008 and break-even earnings. In 2009, we will reap the benefits of our efforts,
with sales expected to reach EUR 270-300 million, with a perceptible improvement
in profitability."

In the first six months of the current business year, total sales climbed by
33.4%, from TEUR 74,805 in the first half-year 2007 to TEUR 99,778. Earnings
before interest, tax, depreciation and amortization (EBITDA) of the HTI Group
improved by 4.8%, from TEUR 8,419 to TEUR 8,826. Earnings before interest and
tax (EBIT) rose 2.7%, from TEUR 3,247 to TEUR 3,335. The earnings margin
declined due to the ongoing unfavorable currency exchange rate developments, the
one-off expenses related to the modernization and relocation of Gruber & Kaja,
and the integration of the acquired subsidiaries.

The Metals Processing segment succeeded in further increasing its sales in the
first half of the 2008 business year. Although the transfer of the Gruber & Kaja
machinery from the former production site to the new facility in St. Marien was
carried out and full production capacity had not yet been achieved during the
period under review, sales of the Metals Processing segment reached TEUR 33,684
in the first half-year 2008 (H1 2007: TEUR 28,887). This represents a share of
34% of total Group sales. The segment´s results from operating activities rose
from TEUR 825 to TEUR 1,904, and the EBIT margin improved from 2.9% to 5.7%.

Sales in the Plastics Processing segment during the first half of the 2008
business year rose to TEUR 40,519 (H1 2007: TEUR 38,343). The above-mentioned
economic slowdown in the automotive sector and the accompanying package of
measures had a negative impact on earnings in this segment. In addition, the
one-off investments and start-up costs in connection with the new plant
construction in Slovakia, the founding of the Romanian subsidiary and the
integration of HTP Skinline also had a negative effect on this segment´s
business results. The segment´s EBITDA and EBIT both declined compared to the
first half of the previous year. In the first six months of 2008, EBITDA
amounted to TEUR 1,469 (H1 2007: TEUR 4,705), whereas EBIT was TEUR -2,243 (H1
2007: TEUR 1,083). Accordingly, the EBIT margin of the segment in the first half
of 2008 was -5.5%, down from the previous year´s level of 2.8%. A positive
earnings development is expected in 2009 following the implementation of the
restructuring measures and the resulting improvement in the company´s automotive
activities.

The Mechanical Engineering segment expanded at the fastest rate: with sales of
TEUR 25,706 (H1 2007: TEUR 7,576), this segment generated a disproportionately
high share of the results from operating activities of the entire HTI Group. The
EBIT of the Mechanical Engineering segment, at TEUR 4,094 represents an EBIT
margin of 15.9%. Due to organic and acquisition-related growth, the share of
total Group sales climbed form 10% to 26%. A further increase in the share of
Group sales generated by the Mechanical Engineering segment will take place in
the third quarter of 2008 due to the initial consolidation of Technoplast and
Hitzinger.

The Management Board believes prospects are good that the company will achieve
the target of about EUR 200 million in annual sales, and earnings at the
break-even point. The main cornerstones enabling HTI to achieve these targets
are the strengthening of the Mechanical Engineering segment, the current series
of measures being implemented in the Plastics Processing segment as well as
ongoing research and development activities. For the 2009 business year, sales
of EUR 270-300 million are expected. Assuming the effectiveness of all the
measures which have been initiated as well as a stable external business
environment, the Management Board anticipates a perceptible improvement in
profitability. Additional earnings potential will be exploited on the basis of
the recent acquisitions, the conclusion of the redimensioning drive in the
Plastics Processing segment and the expansion of the company to the high-growth
markets of Eastern Europe.

Note: The two companies Gruber & Kaja and BBG Baugeräte were initially
consolidated as of February 1, 2007. For this reason, the performance of the HTI
Group in the first half of the 2008 business year is not fully comparable to
half-year 2007 results. A comparison also only has limited validity, due to the
fact that the companies HTP Skinline and Theysohn were initially consolidated in
the first half of 2008, as of January 1, 2008 and April 1, 2008 respectively.
The initial consolidation of Technoplast and Hitzinger is planned for September
30, 2008. The two firms will be assigned to the Mechanical Engineering segment.

Key figures of the HTI Group (IFRS) H1 2008 H1 2007
Total sales TEUR 99.778 74.805
Plastics Processing segment TEUR 40.519 38.343
Metals Processing segment TEUR 33.684 28.887
Mechanical Engineering segment TEUR 25.706 7.576
EBITDA TEUR 8.826 8.419
EBIT TEUR 3.335 3.247
EBT TEUR 445 1.730
Consolidated net profit
for the period TEUR 314 1.647
EBITDA margin % 8,8 11,3
EBIT margin % 3,3 4,3
EBT margin % 0,4 2,3
Consolidated earnings margin % 0,3 2,2
Earnings per share EUR 0,02 0,13

Total assets TEUR 264.717 196.265
Equity TEUR 49.210 45.434
Equity ratio % 19 23
Gearing* % 219 115
Investments TEUR 14.174 8.716
Depreciation and amortization TEUR 5.491 5.172
Gross cash flow TEUR 4.357 6.965
Cash flow from operating
activities** TEUR -7.864 7.866

Average number of employees
for the period Number 1.423 1.063
Sales/employee TEUR 70 70

* Related to acquisitions and organic growth
** The cash flow from operating activities is primarily attributable to changes
in working capital as well as start-up investments for the series production of
new products in the Plastics Processing and Metals Processing segments.

Further inquiry note:
HTI High Tech Industries AG, Mr. Peter Glatzmeier, Chairman of the Management
Board, Tel: +43 (0) 3862 304 - 8590, Fax: +43 (0) 3862 304 - 7598,
[email protected]
HTI High Tech Industries AG, Ms. Nadja Goyer, Investor Relations, Tel: +43 (0)
3862 304 - 8562, Fax: +43 (0) 3862 304 - 7598, [email protected]

end of announcement euro adhoc
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emitter: HTI - High Tech Industries AG
Gruber & Kaja Straße 1
A-4502 St. Marien bei Neuhofen
phone: +43(0)3862/304-8562
FAX: +43(0)3862/304-7598
mail: [email protected]
WWW: http://www.hti-ag.at
sector: Holding companies
ISIN: AT0000764626
indexes: WBI
stockmarkets: official market: Wiener Börse AG
language: English

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