HOMAG Group AG Confirms 2007 Figures

The HOMAG Group Board of Management reported a successful start to the 2008 financial year at its Press Conference on the financial results in Stuttgart. With orders in hand up once again as at March 31st, 2008 over the prior year for the SDAX-listed manufacturer of plants and machines for the woodworking industry, according to the Board of Management capacity utilisation is secured up until the end of the third quarter.

Board spokesman Dr. Joachim Brenk: ‘We are observing worldwide continued lively demand which is sufficient to absorb the weakness in the US market. Our project business is developing extremely well, with strong demand evident particularly for the larger-scale HOMAG Group plants, even in the USA.’ This has pushed incoming orders for the first quarter above target, meaning that the company was able to match the exceptional performance and record levels achieved during the prior year.

This positive development has allowed the Board to confirm its forecast for the 2008 financial year, during which the HOMAG Group AG aims to further extend its leading market position. The forecast envisages a minimal 6 percent rise in turnover coupled with at least a proportional rise of its EBITDA. An improved interest result, the absence of IPO costs and the impact of the corporation tax reforms in Germany are set to actually increase annual net profit after minority interests by over 30 percent.

Positive market development in the threshold countries is providing particular grounds for optimism, with recent trade fairs attended in China and India, for instance, proving highly promising. The HOMAG Group is consequently investing in its Indian sales and service company. A large new building is planned with capacity for over 100 employees which is due for completion at the beginning of 2009.

2007 financial year
The Board of Management also took the opportunity at the Press Conference to provide more detailed information on developments during the prior financial year. 2007 saw the HOMAG Group create over 400 new jobs, bringing the total workforce from 4,701 employees at the end of 2006 to 5,114 as at December 31st, 2007. Of the new jobs, around 280 are located within Germany. Cash flow from (continuing) operating activities has improved substantially, with a rise of 42 percent to EUR 52.7 million (prior year: EUR 37.2 million). This positive business development coupled with funds generated by the flotation resulted in a reduction of net bank debt from EUR 113 to 61 million. This positive financial standing moved the Board of Management and the Supervisory Board to propose that the AGM agree a dividend increase from EUR 0.40 to 0.90 per share.

Confirming the already published provisional figures for 2007, the HOMAG Group AG Board of Management was able to report record levels for the 2007 financial year across all the key indicators. Turnover was up over 13 percent to almost EUR 837 million (prior year: EUR 736 million), incoming orders increased by 19 percent to EUR 747 million (prior year: EUR 626 million), and orders in hand rose as at December 31, 2007 by 32 percent to EUR 255 million compared to the end of 2006 (EUR 193 million).

According to CFO Andreas Hermann, a consistent policy of cost management and a further increase in productivity were responsible for the disproportionately high increase in earnings relative to growth in turnover. This increased EBITDA prior to IPO costs and expenditure from the employee participation scheme by around 21 percent to EUR 103.3 million (prior year: EUR 85.0 million) and EBT prior to IPO costs and expenditure from the employee participation scheme by 38 percent to EUR 71.4 million (prior year: EUR 51.6 million). Even higher increases were shown in the annual net profit after minority interests, which was up 61 percent to EUR 32.0 million (prior year: EUR 19.9 million) and the earnings per share, up 54 percent to EUR 2.12 (prior year: EUR 1.38).

Tel: 01332 856500
Email: inf@homag-uk.co.uk
Web: http://www.homag-group.com