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DGAP-News: euromicron AG: Economically stable first half of the year

August 7, 2014

DGAP-News: euromicron AG / Key word(s): Half Year Results euromicron AG: Economically stable first half of the year 08.08.2014 / 07:00 --------------------------------------------------------------------- Creation of the structures for the company's planned growth largely completed - Consolidated sales of EUR162.2 million, again above the strong figure of the previous year - Consolidated EBITDA margin rises from 6.1% in Q1/2014 to 6.5% - Equity ratio remains strong at almost 40% - New orders up around 6% year on year - Adjusted cash flow from operating activities higher by around EUR5 millionFrankfurt/Main, August 8, 2014 - euromicron AG posted a steady and good business performance with constant quarterly increases in the first half of 2014. Against the backdrop of the continuing special effects of integration, the company is thus within its planned target corridor operationally and in terms of the progress it is making with its extensive, cost-intensive measures under the Agenda 500. Underpinned by this operational stability, the Group continued to press ahead with expanding its base, and restructuring, integrating and further developing the company in the first half of 2014, laying the foundations for the next planned phase of its growth. Consolidated sales On the back of strong new orders and order books in the first quarter of 2014, the euromicron Group generated total consolidated sales of EUR162.2 million at June 30, 2014, another year-on-year increase, this time by 6% over the outstanding figure of EUR153.1 million for the same period of the previous year. Consolidated income Unlike fiscal 2013, which was characterized by particularly high income in the first half and the peak in integration costs in the second half, euromicron has turned in a steady earnings performance with constant quarterly increases, coupled with a further decline in integration costs, in the first six months of the current fiscal year. Consequently, the consolidated EBIT is around EUR5.5 million following absorption of non-recurring costs for integration totaling some EUR1.5 million and pro-rata structural costs for establishing specialist and central functions of approximately EUR1.1 million. These expenditure due to these special influences will not begin to be recouped until the next strategic stage of growth, namely acquisition and integration of manufacturing companies in 2015 and 2016. The Group's operating income was EUR9.0 million. Consolidated EBITDA at June 30, 2014, was EUR10.5 million and so at the planned level. As a result, the consolidated EBITDA margin increased from 6.1% in the previous quarter to 6.5% and is within the envisaged corridor of 6% to 8% for the year as a whole. The net income for the period after minority interests at June 30, 2014, was EUR2.5 million compared with EUR5.0 million in the previous year. Undiluted earnings per share were EUR0.34 versus EUR0.76 in the strong first half of 2013. Order situation at the Group At June 30, 2014, euromicron AG posted new orders worth EUR164.1 million, around 6% higher than the previous year's level of EUR154.8 million. Order books were EUR128.4 million, likewise above the previous year's figure of EUR127.0 million. No risks from significant project delays or postponements are currently known. Balance sheet structure The euromicron Group's total assets were EUR320.7 million at June 30, 2014, a drop of EUR8.2 million over the figure at December 31, 2013 (EUR328.9 million). Personnel euromicron employed a total of 1,784 persons at June 30, 2014 (including 79 trainees), i.e. some 40 more than at December 31, 2013. Personnel costs in the first half of 2014 were around EUR50.5 million and so above the figure for the same period of the previous year (EUR46.2 million); this change is attributable in particular to higher costs relating not only to creation of forward-looking workforce and management structures, but also investment in enhancing the qualifications of the company's employees. Equity Equity at June 30, 2014, was EUR125.0, EUR2.4 million above the level at December 31, 2013. The equity ratio is thus almost 40% compared with 37% at December 31, 2013. Cash flow After adjustment for the effects of factoring, the euromicron Group's cash flow from operating activities improved sharply by EUR4.7 million compared with at June 30, 2013, to EUR -11.7 million at June 30, 2014. A negative cash flow from operating activities is traditionally reported at June 30 and is due to the business model, under which inventories and up-front financing for projects (contract work with a gross amount due from customers) rise sharply in the first half of the year as a result of the higher degree of work in progress, at 30 June 2014, this effect decreased the half-year cash flow by around EUR15.7 million. euromicron's share euromicron's share was impacted by the continuing geopolitical tensions, especially at the beginning of the second quarter of 2014. In the course of the quarter, its price fluctuated between EUR12 and EUR14 and ended it at EUR13.31. Shortly afterwards, at the beginning of July, the price again reached the EUR14 mark. In the second quarter of 2014, the majority of analysts again rated euromicron's share as "Buy" or "Hold", with an upside target of EUR24.50. Outlook "We've set ourselves the goal in the current year of pressing ahead with the defined restructuring, expansion and integration measures so as to enhance our company's structures, processes and financial and personnel resources, largely complete them by the end of the year and transition them to a continuous improvement process," states Dr. Willibald SpÄth, Chairman of the Executive Board. With these long-planned strategic steps to develop the company, the Executive Board aims to create the foundation for further organic growth and smooth accomplishment of the planned acquisitions and integration of manufacturing companies as part of the company's strategic product focus, as well as to achieve sustained and good earnings strength after completion of the Group's restructuring and expansion phase (Agenda 500). A flanking cost-cutting program and continuous reduction in integration costs up to the end of 2014 will help secure the planned earnings for 2014. As things stand at present, the company does not see any impact from the geopolitical risks in the Middle East, North Africa and Ukraine on investment by its customers, with the result that the Executive Board is sticking to its guidance for 2014 and forecasts growth in sales to EUR340 to EUR360 million and an EBITDA margin between 6% and 8%. "No major changes in our corporate strategy are planned. We constantly examine the possibility of expanding our value added process due to the trend in cloud applications," said the Chairman of the Executive Board in conclusion. The company's strategy envisages growth following the acquisition of manufacturing companies to a sales volume of EUR500 million in 2016 and an EBIT margin of between 8% and 11% in the years after. You can find the Q2/2014 Interim Report as of August 8, 2014, on our homepage at http://www.euromicron.de/en/financial-reports.euromicron AG (www.euromicron.de) is an all-round solution provider for communications, transport, data and security. euromicron's network infrastructures integrate voice, video and data transport wirelessly, via copper cable and by means of fiber-optic technologies. euromicron builds leading applications, such as security, control, healthcare or surveillance systems, on the basis of these cutting-edge network infrastructures. Founded on its expertise as a developer and producer of fiber-optic components, euromicron AG is a strongly growing, highly profitable group that is listed on the stock market, has a medium-sized character and focuses on operational growth, integration and further market penetration, internationalization and expansion. Contact: euromicron AG Investor & Public Relations Zum Laurenburger Hof 76 60594 Frankfurt/Main Germany Phone: +49 (0)69-631583-0 Fax: +49 (0)69-631583-17 E-mail: IR-PR@euromicron.dehttp://www.euromicron.de Securities identification number A1K030 ISIN DE000A1K0300 --------------------------------------------------------------------- 08.08.2014 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: euromicron AG Zum Laurenburger Hof 76 60594 Frankfurt am Main Germany Phone: +49(0) 69 631583-0 Fax: +49(0) 69 631583-17 E-mail: info@euromicron.de Internet: www.euromicron.de ISIN: DE000A1K0300 WKN: A1K030 Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, DÜsseldorf, Hamburg, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 281388 08.08.2014


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