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exceet Group SE: First Half-Year 2014 Report

August 8, 2014

(DGAP-Media / 08.08.2014 / 19:46) Financial Results First Half-Year 2014 Positive business development in cautious markets ? Net Sales H1 2014 reached EUR 92.9 million plus 2.3%; all organic growth ? EBITDA-margin level of 9.6% for H1 2014 ? Cautious markets caused slight slowdown in Q2 2014 ? exceet's outlook remains on track for FY 2014 expectations Luxembourg, 8 August 2014 - 06.30 p.m. - The revenue of the first six months 2014 reached EUR 92.9 million (H1 2013: EUR 90.8 million) representing an increase of 2.3% which was mainly driven by a strong Q1 2014 and reflects the organic growth as well. Due to the cautious market environment in Q2 2014 and the project related variability of IDMS sales, the revenue decreased in Q2 2014 by 6.8% to EUR 44.5 million (Q2 2013: EUR 47.8 million). The continuous focus on higher margin products in all segments supported the gross profit margin improvement from 17.6% in H1 2013 to 18.1% in H1 2014. The margin of 17.1% in Q2 2014 is driven by the current product-mix and reduced leverage due to lower sales. In combination with the benefits of a moderate cost development EBITDA increased in the first half-year 2014 by EUR 0.7 million to EUR 8.9 million (H1 2013: EUR 8.2 million). The Q2 2014 EBITDA of EUR 3.9 million is representing 8.8% of net sales (Q2 2013: EUR 5.3 million or 11.2% of net sales). On 30 June 2014 exceet's order backlog amounted to EUR 100.6 million (30.06.2013: EUR 102.3 million) and reflects with a book-to-bill ratio of 1.01 the outlook of exceet for FY 2014. The backlog supports exceet's expectation to compensate the projects related dip of IDMS sales in Q2 2014 as well. Electronic Components, Modules & Systems (ECMS), net sales declined by 3.4% to EUR 67.0 million during the first six months of 2014, against EUR 69.4 million in H1 2013 which is mainly caused by the cautious order behavior of customers in the current uncertainty of the market during Q2 2014. Revenues for the second quarter of 2014 declined by EUR 3.9 million to EUR 33.4 million (Q2 2013: EUR 37.3 million). Therefore ECMS represents 72% of the overall Group sales. The EBITDA for the first six months of 2014 reached EUR 10.9 million (16.3% margin) compared to EUR 9.8 million (14.1% margin) in H1 2013. The decline of sales reduced the EBITDA in Q2 2014 to EUR 5.3 million (Q2 2013: EUR 6.4 million) with a margin of 15.8% (Q2 2013: 17.2%). With several development projects we were able to further strengthen ECMS's position as leading provider of opto-electronical products for exceet's key markets. In the health market, these developments enable ECMS to supply products which allow a new level of quality in resolution of medical images by increasing the detector efficiency. The recently acquired exceet Medtec Romania S.R.L. is specialized in miniaturized electronics for implants. ID Management & Systems (IDMS), the IDMS revenue within the first six months of 2014 amounted to EUR 22.2 million, which represents an increase of 12.4% compared to EUR 19.7 million in H1 2013. IDMS achieved an EBITDA of EUR 0.8 million for H1 2014 (H1 2013: EUR 0.5 million) representing 3.6% EBITDA margin (H1 2013: 2.4%). IDMS continues to execute its initiated efficiency programs to support a profitable revenue growth. The segment accounts for 24% of the group-wide sales. Revenues for the second quarter of 2014 declined by 2.8% to EUR 9.2 million (Q2 2013: EUR 9.5 million). The EBITDA reached EUR -0.1 million compared to EUR 0.0 million in Q2 2013. exceet Secure Solutions (ESS), is continuously investing in exceet's core markets of Health, Industry and Security with solutions for Machine-to-Machine (M2M) communication, identification and data security. Substantial parts of the ongoing project development work are multifunctional, multi-access and highly secure mobile access solutions. During the reporting period, the segment ESS generated revenues of EUR 3.9 million in H1 2014 (H1 2013: EUR 1.9 million), accounting for 4% of the total group sales. This reflects a strong improvement by doubling the sales compared to H1 2013. Clear driver of this positive development is the ongoing telematics project for the German health card (eGK). Due to the initial efforts related to the further development of the described technologies, the EBITDA of H1 2014 reached EUR -0.4 million (H1 2013: EUR -0.2 million). Outlook for 2014 Despite the slight slowdown of the market environment, exceet's outlook remains for the time being positive for further organic growth and profitability margin improvement. Greenock S.À r.l. a major shareholder of exceet Group SE had informed the company in Q1 2014 that they are assessing their strategic options related to their shareholding in exceet Group SE, including a possible disposal of such shareholding to a third party. Pursuant to the updated information provided by Greenock S.À r.l., no final decision has still been taken regarding the form and timing of the potential transaction. Annex: Performance and Structural Data H1 2014 The complete Interim Management Report on the first half-year 2014 and the actual Investor Relation Presentation are available at Please contact for further information: Wolf-GÜnter Freese, CFO investor.relations@exceet.luexceet Group SE 115 avenue Gaston Diderich L-1420 Luxembourg Phone +352 26 29 91 22 ISIN LU0472835155 (Public Shares), Regulated Market, Prime Standard, Frankfurt/Main ISIN LU0472839819 (Public Warrants), Regulated Market, General Standard, Frankfurt/Main exceet will announce nine months results for 2014 on 3 November 2014 (after closing of the market). About exceet: exceet is an international technology group, which is specialized in the development and production of intelligent, complex and secure electronics. End of Media Release --------------------------------------------------------------------- Issuer: exceet Group SE Key word(s): Enterprise 08.08.2014 Dissemination of a Press Release, 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 and --------------------------------------------------------------------- Language: English Company: exceet Group SE 114, avenue Gaston Diderich L-1420 Luxemburg Grand Duchy of Luxembourg Phone: +352 2600 3181 Fax: +352 2600 3133 E-mail: Internet: ISIN: LU0472835155, LU0472839819 WKN: A0YF5P, A1BFHT Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in MÜnchen End of News DGAP-Media --------------------------------------------------------------------- 281590 08.08.2014

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