EANS-Adhoc: Mühlbauer increases sales and earnings to a record high - earnings forecast for total year raised

ad-hoc disclosure pursuant to section 15 of the WpHG transmitted by euro adhoc with the aim of a Europe-wide distribution. The issuer is solely responsible for the content of this announcement.


Roding, 29 July 2010 - Based on its strong government business and the progressive intensification of its industry business, the globally active Mühlbauer technology group was able to build on its positive start to the financial year in Q2 2010. While incoming orders almost doubled compared to the same period of the previous year, sales and earnings climbed to a historic quarterly record high and significantly exceeded the values for the same quarter of the previous year. Based on the extremely positive development in sales and earnings recorded in Q2 2010, and the high order backlog to the end of the quarter under review, the Mühlbauer Group raises its earnings forecast issued for the total year and is now expecting to achieve an EBIT of at least EUR 25 million in the 2010 financial year.

While quarterly sales were significantly higher year-on-year, at EUR 63.3 million (PY: EUR 43.2 million) and up 46.5% due to growth in all business areas, earnings before interest and taxes (EBIT) for the quarter under review rose more than five-fold against the same period of the previous year, at EUR 14.4 million (PY: EUR 2.7 million). Compared with the EBIT, adjusted for special effects, of the previous year (EUR 4.1 million), this amounts to a 251.2% increase. This corresponds to a significantly higher EBIT margin of 22.7%, after 6.3% or adjusted 9.5% year-on-year. Due to a slight improvement of financial result by EUR 0.2 million earnings before taxes rose to EUR 14.5 million (PY: EUR 2.6 million), while net earnings were considerably higher year-on-year, at EUR 10.5 million (PY: EUR 1.8 million) due to a lower income tax rate. Referring to the earnings per share, this means a sixfold increase compared to the same period of the previous year (EUR 0.73; PY: 0.12 EUR).

On a half-yearly comparison, sales increased from EUR 81.3 million to EUR 92.8 million, which is equivalent to a growth in sales by 14.1%. Adjusted for special effects from legal disputes with an effect on the income statement, which have, however, since been settled, the EBIT of EUR 14.2 million, achieved in 1HY 2010, almost doubled year-on-year (PY: EUR 7.6 million). Taking into account these special effects, the EBIT achieved in 1HY 2010 totals EUR 16.2 million, which amounts to more than triple the EBIT achieved in the same period of the previous year (EUR 5.1 million). This corresponds to an EBIT margin of 17.5%, after 6.3% year-on-year. At the same time earnings per share increased from EUR 0.24 to EUR 0.87.

In 1HY 2010, at EUR 24.9 million, cashflow from operating activities, adjusted for cashflows from transactions with short-term marketable securities, was EUR 18.5 million above the level for the same period of the previous year (EUR 6.4 million). The reason for this distinct rise are primarily the higher net earnings and inflows of liquidity from the reduction of working capital. Taking into consideration the outflow from investment activities, which is at EUR 10.6 million (PY: EUR 11.1 million) only slightly under the level of the previous year, the technology group Mühlbauer records a free cashflow of EUR +14.2 million, which represents a EUR +19.0 million year-on-year increase (PY: EUR -4.8 million). The equity ratio dropped from 77.9% at the end of the previous year to 74.1% at the end of the quarter under review due to the payment of dividends of EUR 1.00 per no par share to shareholders and the distribution of profits to the personally liable shareholder.

Significant increases of order income in all business areas of the Mühlbauer technology group resulted in a total order income of EUR 59.2 million in Q2 2010 and thus to an upturn of 90.4% against the same period of the previous year (EUR 31.1 million). While the order book in the company´s core business area Cards & TECURITY® rose 74.3%, to EUR 33.3 million, due largely to government orders for the implementation of ID projects, the order volume in Semiconductor Related Products in fact more than doubled year-on-year, from EUR 8.5 million to EUR 17.7 million. In Traceability, orders increased from EUR 1.0 million to EUR 2.5 million year-on-year, which represents growth of 150.0%. At EUR 5.7 million (PY:
EUR 2.5 million), Precision Parts & Systems recorded an increase of orders of 128.0% for the same period. In the first half of 2010, the high growth of order income of the Mühlbauer technology group led to a cumulated order income of EUR 173.1 million, thereby doubling incoming orders compared to same period in the previous year (EUR 83.3 million). To the end of the reporting period order backlog totaled EUR 149.5 million and thus lagging only slightly behind the Q1 2010 figure (EUR 154.6 million).

end of announcement euro adhoc

issuer: Mühlbauer Holding AG & Co.KGaA Josef-Mühlbauer-Platz 1 D-93426 Roding phone: +49(0)9461-952-1653 FAX: +49(0)9461-952-788 mail: investor-relations@muehlbauer.de WWW: http://www.muehlbauer.de sector: Machine Manufacturing ISIN: DE0006627201 indexes: CDAX, Prime All Share, Technology All Share

stockmarkets: regulated dealing/prime standard: Frankfurt, free trade: Berlin, Hamburg, Stuttgart, Düsseldorf, München
language: English

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