EANS-Adhoc: Mühlbauer Holding AG & Co.KGaA / Mühlbauer ends 2010 with record result - increase of dividend to EUR 1.30 planned

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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.
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16.03.2011

Roding, 16 March 2011 - "2010 was an excellent year for Mühlbauer. Thanks to our
technology and market expertise, the concentration of which is unique worldwide,
we were able to convince further government organizations of our solution
competency", commented Josef Mühlbauer, personally liable shareholder of
Mühlbauer. "Sales and earnings hit historic highs, also due to the global
economic recovery on the industrial markets. At the same time we further
reinforced our market position on our core markets and progressively extended
our solid base through massive investments. We are confident that we will
further raise sales and earnings in 2011 - the year Mühlbauer celebrates its
30th anniversary."

Sales development. In the 2010 financial year, Mühlbauer raised sales
significantly, to a new record high of EUR 207.5 million. This corresponds to
growth of 29.1% against the value achieved for the same period of the previous
year (PY: EUR 160.8 million). The realization of further, partly high-volume
government projects and the positive development in the area of industrial card
applications resulted in sales of EUR 126.9 million in the company´s core
business area Cards & TECURITY® and thus to a 12.5% year-on-year increase (PY:
EUR 112.8 million). Semiconductor Related Products again proved to be the
primary driver of the Group's sales development in 2010. As a result of the high
demand for RFID Smart Label and semiconductor backend solutions, Mühlbauer
achieved record sales of EUR 49.7 million (PY: EUR 29.5 million) in this area,
corresponding to a sales increase of 68.8%. The economic recovery in 2010, also
had a positive impact on the remaining two business areas. While sales in
Traceability climbed 58.6%, to EUR 9.2 million (PY: EUR 5.8 million), Precision
Parts & Systems achieved a record high with sales of EUR 21.7 million (PY: EUR
12.7 million), thus exceeding the same period of the previous year by 70.9%.

Earnings development. In 2010, the earnings situation benefited strongly from
the positive business development. At EUR 38.2 million, EBIT did not only
approximately exceed the previous year´s value of EUR 9.6 million three-fold. It
also recorded a new record high in the history of the Group. Gross profit, which
rose strongly against sales, at EUR 28.3 million or 52.3%, contributed
significantly to this extremely positive sales development. Also supported by a
EUR 0.3 million year-on-year improvement in financial result, the Group recorded
an EBT of EUR 38.6 million (PY: EUR 9.7 million), overall. This corresponds to a
profit margin of 18.6%, after 6.0% in the previous year. Taking into
consideration a slightly lower tax rate, consolidated net earnings rose by EUR
23.0 million, to EUR 30.3 million (PY: EUR 7.3 million). In relation to
individual shares, earnings totaled EUR 2.09 (PY: EUR 0.50), thus having
increased more than four-fold against the previous year.

Dividend suggestion. Mühlbauer is continuing its stable and continuity-oriented
dividend policy of previous years. The personally liable shareholder and
Supervisory Board therefore intend to propose to the Annual General Meeting the
payment of a 30% higher dividend of EUR 1.30, after EUR 1.00 in the previous
year.

Cashflow. In the year under review, cashflow from operating activities totaled
EUR 47.9 million and was thus EUR 17.7 million higher year-on-year (PY: EUR 30.2
million). The main reason for this distinct increase was the record level of net
earnings achieved during the reporting period. This positive development was
also benefited by the decline of working capital, which dropped 23.2% against
the previous year. At EUR 27.9 million, the outflow from investment activities
was 77.7% higher than in the previous year (PY: EUR 15.7 million). This increase
is primarily due to the increased investments in fixed assets, particularly in
the company´s technology centers in Malaysia, Slovakia and at its headquarters
in Roding. Both the financial and the capital structure of the Mühlbauer Group
form a solid basis for further business development with an adjusted free
cashflow of EUR 25.9 million (PY: EUR 3.3 million), shareholders´ equity of
73.5% (PY: 77.9%) and net liquidity of EUR 38.4 million (PY: EUR 25.8 million)
to the end of 2010.

Order income. Based on a series of further government orders and the rise in
demand in the industry business, which is also due to the economic recovery,
order income rose to EUR 301.6 million during the reporting period. This not
only corresponds to a massive increase of 93.6% against the order income of EUR
155.8 million, achieved in the same period of the previous year; moreover, with
this value, Mühlbauer achieved the highest order income in the history of the
company. This extremely dynamic development had an equally positive effect on
order backlog, which was 125.5% higher, at EUR 159.9 million, than the previous
year´s value of EUR 70.9 million.

Outlook. In future, the possible applications in the industries and markets
relevant to Mühlbauer will continue to gain in importance. The increasing
mobility of people in connection with a rising need for security and a desire to
rationalize their administrative systems will continue to be the main drivers of
governments and public authorities in paving the way for innovative ID solutions
such as biometric ID cards and ePassports. Furthermore, the number of
applications in the area of contactless identification using RFID Smart Labels
is rising progressively due to the distinct drop in costs for label production.
As developer and manufacturer of the complete range of hardware and software
systems in-house, customers benefit in a special way from the solution
provider´s technology and market expertise, which has grown over a period of
thirty years. As a result, Mühlbauer considers itself strategically well
positioned to benefit strongly from the potential available on these markets -
thanks to its unique range of services. In the 2010 financial year the company
consistently prepared for the future - through massive investments - and against
this background it maintains its long-term growth strategy. In the current
financial year, the Group is therefore expecting to achieve a further increase
of sales and earnings against the extremely good previous year and further
growth in the year to come.

Further inquiry note:
Ramona Bemmerl
Investor Relations
+49(0)9461-952-1653
[email protected]
end of announcement euro adhoc
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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:        [email protected]
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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