euro adhoc: VA Technologie AG / Annual Reports / The international

economic situation demands focusing and result quality
In 2002, one VA TECH Group target was selective order intake and a focus on result quality. Despite this restrictive policy, EUR 4,125 m in new orders were obtained, which represents clear evidence of the high levels of customer confidence in the Group's capabilities. Order backlog amounted to EUR 3,961 m, approximately by the same level as sales of EUR 3,872 m. Sales reached last year’s level on a comparable basis. (E) =

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Marked improvement in the operating result
The clear improvement in the EBITA (earnings before interest, taxes and goodwill amortisation) for 2002 from a comparable figure of EUR 70 m in the preceding year to EUR 129 m, indicates the positive development of the operating result.
Group EBIT (earnings before interest and taxes) was also raised from the comparable EUR 7 m of last year to EUR 83 m in 2002 and thus attained the level of the 2001 result, including all its related one-off aspects. The financial result totalled minus EUR 174 m (2001:
minus EUR 116 m excluding the book gain from the sale of voestalpine shares). This figure contains the write-down of the investment in the insolvent company Babcock Borsig Power amounting to EUR 44.4 m.
The loss for the period amounted to minus EUR 93 m and was thus stabilised at the level of the already published result for the first nine months of 2002.

Net liquidity and cash flow positive again
The active cash management throughout all Group companies has meant that the net debt (gross liquidity minus interest bearing debt capital) has not only been reduced, but turned into positive net liquidity (EUR 83 m after minus EUR 21 m in the previous year). VA TECH cash flow also developed in an extremely satisfactory manner. Apart from cash flow from operating activities (EUR 97 m after EUR -202 m in 2001), also the free cash flow - including the cash flow from investing activities - was positive with EUR 101 m (after minus EUR 82 m in the previous year).

Outlook for 2003
Order intake and sales in the order of magnitude to those of the past year are anticipated for 2003. The main objective for this year is a sustained improvement in earnings power through further measures aimed at raising efficiency and cost reduction as well as securing a positive situation with regard to Group liquidity.
No major investments in fixed assets are planned for the coming years and from a current viewpoint no large-scale acquisitions are foreseen for 2003.
Following the successful conclusion of restructuring measures in the Metallurgy Division and despite the unfavourable market situation in the Water Systems Division, the aim is to significantly improve the operating result in 2003 and to achieve a clearly positive net result.

++++2003-03-26

Further inquiry note:
Wolfgang Schwaiger
Strategy, Communications and Investor Relations

phone: 43 732 6986-9222
fax: 43 732 6980-3416
wolfgang.schwaiger@vatech.at
Tel: +43(0)732 6986
FAX: +43(0)732 6986 3416
Email: contact@vatech.at

end of announcement euro adhoc

Emittent: VA Technologie AG
Lunzerstrasse 64
AT-4031 Linz
Tel: +43(0)732 6986
FAX: +43(0)732 6986 3416
Email: contact@vatech.at
WWW: www.vatech.at
ISIN: AT0000937453
WKN: 093745
Indizes: ATX, ATX Prime, WBI
Börsen: free trade Bayerische Börse, Berliner Wertpapierbörse; official dealing Wiener Börse AG
Branche: Technology
Sprache: Englisch

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