EANS-Adhoc: Mühlbauer increases sales and earnings to a record high - earnings forecast for total year raised

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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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6-month report

29.07.2010

Roding, 29 July 2010 - Based on its strong government business and
the progressive intensification of its industry business, the
globally active Mühlbauer technology group was able to build on its
positive start to the financial year in Q2 2010. While incoming
orders almost doubled compared to the same period of the previous
year, sales and earnings climbed to a historic quarterly record high
and significantly exceeded the values for the same quarter of the
previous year. Based on the extremely positive development in sales
and earnings recorded in Q2 2010, and the high order backlog to the
end of the quarter under review, the Mühlbauer Group raises its
earnings forecast issued for the total year and is now expecting to
achieve an EBIT of at least EUR 25 million in the 2010 financial
year.

While quarterly sales were significantly higher year-on-year, at EUR
63.3 million (PY: EUR 43.2 million) and up 46.5% due to growth in all
business areas, earnings before interest and taxes (EBIT) for the
quarter under review rose more than five-fold against the same period
of the previous year, at EUR 14.4 million (PY: EUR 2.7 million).
Compared with the EBIT, adjusted for special effects, of the previous
year (EUR 4.1 million), this amounts to a 251.2% increase. This
corresponds to a significantly higher EBIT margin of 22.7%, after
6.3% or adjusted 9.5% year-on-year. Due to a slight improvement of
financial result by EUR 0.2 million earnings before taxes rose to EUR
14.5 million (PY: EUR 2.6 million), while net earnings were
considerably higher year-on-year, at EUR 10.5 million (PY: EUR 1.8
million) due to a lower income tax rate. Referring to the earnings
per share, this means a sixfold increase compared to the same period
of the previous year (EUR 0.73; PY: 0.12 EUR).

On a half-yearly comparison, sales increased from EUR 81.3 million to
EUR 92.8 million, which is equivalent to a growth in sales by 14.1%.
Adjusted for special effects from legal disputes with an effect on
the income statement, which have, however, since been settled, the
EBIT of EUR 14.2 million, achieved in 1HY 2010, almost doubled
year-on-year (PY: EUR 7.6 million). Taking into account these special
effects, the EBIT achieved in 1HY 2010 totals EUR 16.2 million, which
amounts to more than triple the EBIT achieved in the same period of
the previous year (EUR 5.1 million). This corresponds to an EBIT
margin of 17.5%, after 6.3% year-on-year. At the same time earnings
per share increased from EUR 0.24 to EUR 0.87.

In 1HY 2010, at EUR 24.9 million, cashflow from operating activities,
adjusted for cashflows from transactions with short-term marketable
securities, was EUR 18.5 million above the level for the same period
of the previous year (EUR 6.4 million). The reason for this distinct
rise are primarily the higher net earnings and inflows of liquidity
from the reduction of working capital. Taking into consideration the
outflow from investment activities, which is at EUR 10.6 million (PY:
EUR 11.1 million) only slightly under the level of the previous year,
the technology group Mühlbauer records a free cashflow of EUR +14.2
million, which represents a EUR +19.0 million year-on-year increase
(PY: EUR -4.8 million). The equity ratio dropped from 77.9% at the
end of the previous year to 74.1% at the end of the quarter under
review due to the payment of dividends of EUR 1.00 per no par share
to shareholders and the distribution of profits to the personally
liable shareholder.

Significant increases of order income in all business areas of the
Mühlbauer technology group resulted in a total order income of EUR
59.2 million in Q2 2010 and thus to an upturn of 90.4% against the
same period of the previous year (EUR 31.1 million). While the order
book in the company´s core business area Cards & TECURITY® rose
74.3%, to EUR 33.3 million, due largely to government orders for the
implementation of ID projects, the order volume in Semiconductor
Related Products in fact more than doubled year-on-year, from EUR 8.5
million to EUR 17.7 million. In Traceability, orders increased from
EUR 1.0 million to EUR 2.5 million year-on-year, which represents
growth of 150.0%. At EUR 5.7 million (PY: EUR 2.5 million), Precision
Parts & Systems recorded an increase of orders of 128.0% for the same
period. In the first half of 2010, the high growth of order income of
the Mühlbauer technology group led to a cumulated order income of EUR
173.1 million, thereby doubling incoming orders compared to same
period in the previous year (EUR 83.3 million). To the end of the
reporting period order backlog totaled EUR 149.5 million and thus
lagging only slightly behind the Q1 2010 figure (EUR 154.6 million).

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

Further inquiry note:

Tilo Rosenberger

Investor Relations

+49(0)9461-952-1653

tilo.rosenberger@muehlbauer.de

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