euro adhoc: Mühlbauer Holding AG & Co.KGaA / Annual Reports / 'Ad-hoc message pursuant to § 15 WpHG' Balance 2007: Mühlbauer meets upper end of adjusted sales target - Strong advancements in intern

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annual report

13.03.2008

Roding, 13 March 2008 - Mühlbauer Holding AG & Co. KGaA, quoted on
the Prime Standard and worldwide active independent advisor and
manufacturer of innovative security solutions for the TECURITY®
market, pressed ahead with its global expansion according to plan and
established new technology centers in Malaysia and Slovakia.
Concurrently, Mühlbauer achieved the upper end of its adjusted sales
target of EUR 159.5 million in the period under report. In view of
the positive market prospects for security-oriented ID systems in
Smart Card and passport format, the company anticipates positive
development in both sales and earnings for the next two years.
Current order income in Q1 2008 has already intensified
significantly.

Irrespective of the positive market prospects, the technology group
achieved earnings before interest and taxes (EBIT) of EUR 26.4
million in the year under review, lagging behind earnings for the
previous year of EUR 34.4 million. This has been the result of weak
earnings in the first half of the year, risk provisions in
inventories, higher personnel expenditures and the expansion of
research and development activities in the new established sites.
Consequently, earnings before taxes (EBT) fell to EUR 28.4 million
(PY: EUR 38.0 million). This corresponds to a pretax profit margin of
17.9% (PY: 23.7%). Net earnings amounted to EUR 19.1 million at the
end of 2007, significantly lagging behind the comparable value of the
previous year (EUR 27.7 million) due to the capitalized claim for the
payment of a corporation tax credit from the previous year of EUR 2.3
million. This resulted in a decrease in earnings per share to EUR
1.31 in the year under review after EUR 1.90 (adjusted for the
special tax effect EUR 1.74) in the previous year. The company would
like to continue its stable dividend policy and therefore will
propose to the Annual General Meeting a dividend distribution on the
basis of the previous year of EUR 1.00 (adjusted by EUR 0,25 special
dividend) per share entitled to dividend.

Free cashflow of the group improved significantly. Due to the
considerable reduction in the need for cash to finance working
capital and the noticeable decrease in investment expenses by EUR 9.3
million (PY EUR 13.3 million), free cashflow increased to EUR 16.4
million in comparison to previous year´s value (PY: EUR 2.4 million).

Order income of the technology group amounted to EUR 167.5 million.
This corresponds to an increase by 3.7% compared to previous year´s
value of EUR 161.5 million. While the areas SmartID, Traceability and
Precision Parts & Systems could partially show a significant growth,
order income of Semiconductor Related Products area dropped behind
the comparable previous year´s value by 8.7%. In the same period
order backlog dropped from EUR 79.2 million to EUR 73.0 million.

With a sales volume of EUR 159.5 million* in the reporting period,
the Mühlbauer technology group concluded the financial year by almost
matching last year´s level of EUR 160.9 million, and achieved the
upper end of its sales target which was adjusted because of longer
project lead time in the product line Cards & TECURITY® and the
continuing weakness in the semiconductor industry. The core business
area SmartID generated annual sales of EUR 96.3 million, surpassing
last year´s sales of EUR 91.8 million by 4.9%. In the business area
Semiconductor Related Products, sales for the Mühlbauer Group
accounted for EUR 30.4 million and lagged behind last year´s value of
EUR 39.4 million by 22.6%. Sales in the business area Traceability
could not yet benefit from the considerable double-digit order income
and improved from EUR 13.7 million in the previous year to EUR 14.0
million only slightly. The area of Precision Parts & Systems,
however, benefited from the positive market development. With a
distinct growth in sales to EUR 18.8 million, this area exceeded
previous year´s value of EUR 16.0 million by 16.8%.

The new technology base in Malaysia completed in the reporting year
has established Mühlbauer in a new and strategically significant
position which enables the group to pursue its global orientation.
The expansion to Malaysia has already proven successful, as the
location has already received first orders. The US-American market
offers similar opportunities. To benefit from the market potential
Mühlbauer seeks to intensify its positioning in the USA and equip its
Virginia branch this year with a state-of-the-art customer relations
center. Furthermore, the company intends to press ahead with the
strategic expansion of its development site in Slovakian Nitra. For
this purpose the company expects capital expenditures of up to EUR 10
million in the current year. Based on a dynamic development in the
Cards & TECURITY® market and its strong strategic positioning,
Mühlbauer anticipates positive developments in both sales and
earnings for the next two years.

*Sales figures are gross values before subtraction of any deductions
on sales proceeds of EUR 0.4 million (PY: EUR 0.2 million)

Contact and additional information: Investor Relations, Tilo
Rosenberger, Tel.: +49 (0) 9461-952-1653, Fax: +49 (0) 9461-952-8520,
investor-relations@muehlbauer.de, Mühlbauer Holding AG & Co. KGaA,
Josef-Mühlbauer-Platz 1, 93426 Roding, Germany, www.muehlbauer.de.

end of announcement euro adhoc
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ots Originaltext: Mühlbauer Holding AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Hubert Erfurth = Hubert Forster

Branche: Machine Manufacturing
ISIN: DE0006627201
WKN: 662720
Index: Nemax 50, CDAX, Prime All Share, Technologie All Share
Börsen: Börse Frankfurt / regulated dealing/prime standard
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