EANS-Adhoc: SW Umwelttechnik: Clear increase of turnover, but market situation in CEE remains strained

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9-month report

24.11.2010

• Turnover improved by 15 % - 20 % increase in the third quarter alone
• Successful restructuring is mirrored in the improved result
• Positive forecast for the Hungarian and Romanian markets from 2011 on

The listed family company, SW Umwelttechnik, was able to increase its
turnover by 15 % in the first three quarters to EUR 54.2 m compared
to the previous year when it reached EUR 47.0 m. In the third quarter
alone turnover was improved by 20 %, resulting from the increased
market share in Hungary and Romania. All other key data that measure
success also show a positive development. EBITDA is 167 % higher and
EBIT EUR 3.4 m higher than those values in the first three quarters
of the previous year.

The stabilisation that had already been recorded in the second
quarter of this year, continued on into the third quarter. The
increase of turnover meant that the negative result from the first
quarter could be further reduced. "The successfully implemented
restructuring measures and their effect on the balance sheet are
mirrored in the much-improved result. Price levels remain under
pressure, but we have already introduced appropriate countermeasures
that will lead to an increase in gross earning from 2011 on", says
board member Dr. Bernd Wolschner in regards to SW Umwelttechnik´s
results.

Austria had to grapple with the tense financing situation in the
municipalities, but did develop positively as the year progressed and
so we were able to successively reduce the negative turnover from the
strong previous year. Turnover for September is already higher than
that of the same month in 2009.

In Hungary we were able to improve our turnover even though
commissioning from the public sector was quite low and we can record
a plus of 40 % in comparison with the previous year. This is due to
increased orders coming from the industry and trade sector. Once the
2010 elections have taken place in Hungary the management is
expecting an increase in commissioning from the public sector from
the beginning of 2011 on.

In Romania we were able to increase the volume of production in the
civil engineering segment by 30 % compared to 2009 - the turnover
does not, however, reflect this strong increase in its entirety due
to the devaluation of the exchange rate. For 2011 we predict an
improvement partly due the increase of commissioning from the
industry and trade sector and partly due to the proactive alignment
of the price levels through SW and our strong market position.

The break down of turnover onto the different business segments shows
a slight shift from the water conservation segment to the
infrastructure and project engineering segments. This is also due to
the delay of local projects in Hungary. Water conservation remains
the biggest segment with EUR 22.7 m (2009: EUR 24.4 m) and a total
share of 42 % (2009: 52 %), infrastructure has increased to EUR 20.2
m (2009: EUR 15.5 m) and a share of 37 % (2009: 33 %) and project
engineering amounts to EUR 11.3 m (2009: 7.1 m) and a share of 21 %
(2009: 15 %).

EBITDA of the first nine months was strongly expanded from the last
quarter on and now amounts to EUR 5.2 m. The accumulated EBIT is back
in the black and amounts to EUR 0.9 m which is EUR 3.4 m higher than
for the same period of the previous year. The decreased EURIBOR as
well as the differences in exchange rates had a positive effect on
interest paid and so also on the financial result. Therefore an
improved financial result of -EUR 2.6 m (2009: -EUR 3.3 m) can be
recorded for the first nine months.

POA (profit or loss on ordinary activities) has been much improved on
an annual comparison, however it remains in the red for the first
three quarters with a total of -EUR 1.6 m (2009: -EUR 5.8 m). When
considering the third quarter on its own, as with the second quarter,
a profit on activities can be recorded and now amounts to EUR 3.4 m.

Volume of orders The volume of orders as of 30 September 2010 amounts
to EUR 30.5 m (2009: EUR 31.6 m). According to plan 52 % of those
will still be realised in the year under review.

Financial situation Long-term assets have increased to EUR 74.1 m
compared to the third quarter of the previous year when they amounted
to EUR 70.7 m. Fixed assets were reduced, but instead investment
property is declared in the third quarter 2010. Short-term assets
show no significant change to the previous year and the optimised
stock and claims management has been kept up successfully. A balance
sheet total of EUR 113.7 m (2009: EUR 108.7 m) can be reported.
Equity capital as per 30 September amounts to EUR 15.2 m and when
considering non-cash effective book losses it amounts to EUR 23.3 m.
Liabilities have slightly increased to EUR 98.6 m (2009: EUR 95.4 m)
due to higher accruals. The biggest part, the financial liabilities,
remain at almost the same level with EUR 78.9 m (2009: EUR 79.0).

Outlook The restructuring measures implemented by the Management are
taking effect. "We have aligned our cost structure and our products
with the low market level and at the same time are in a great
position to benefit from an upswing" says board member Dr. Bernd
Wolschner. "The market environment remains challenging for 2011 -
particularly in CEE we can only make careful predictions due to the
limited visibility here".

In Austria we foresee a stabilisation of earnings because of a strong
autumn. In Hungary we also expect a further improvement on the one
hand in the water conservation segment due to increased local
commissioning and on the other hand in the infrastructure segment
because the industry and trade sector is showing a greater
willingness to invest again. For Romania we predict a slight
improvement in investments through clients from the industry and
trade sector until the end of the year. We are also expecting an
increase in commissioning through the government in the water
conservation segment.

PoL in EUR m

Q1 - Q3 2010 Q1 - Q3 2009
Turnover 54.2 47.0
EBIT 0.9 -2.5
EBITDA 5.2 2.0
PLOA -1.6 -5.8

Balance sheet in EUR m
Q1 - Q3 2010 Q1 - Q3 2009
Fixed assets 77.7 73.1
Floating assets 36.0 35.6
Balance sheet total 113.7 108.7
Equity capital 15.2 13.3
Debt capital 98.5 95.4

Balance sheet in EUR m incl. intrinsic value
Q1 - Q3 2010 Q1 - Q3 2009
Fixed assets 85.9 78.8
Floating assets 36.0 35.6
Balance sheet total 121.9 114.4
Equity capital 23.3 19.1
Debt capital 98.6 95.4

Financial calendar
Preliminary result 28/02/2011
Press conference, Vienna 27/04/2011
General meeting, Klagenfurt 20/05/2011
Ex-dividend day 24/05/2011
Q1 2011 25/05/2011
Ex-dividend pay day 27/05/2011
Half-year financial report 2011 24/08/2011
Q3 2011 23/11/2011

These are anticipated dates only.

Notification: The report on Quarter 3 can be downloaded from our
website (www.sw-umwelttechnik.com) and ordered from the company´s
headquarters.

end of ad-hoc-announcement ==========================================
====================================== SW Umwelttechnik, a family
firm founded in 1910 and listed on the Viennese stock exchange since
1997, stands for sustainable management and consistent growth in
Eastern and South Eastern Europe. With our innovative technology to
protect the environment we provide an important contribution for the
development of necessary infrastructure in Central and South Eastern
Europe.

end of announcement euro adhoc
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ots Originaltext: SW Umwelttechnik
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

DI Dr. Bernd Wolschner

Member of the Management Board

Tel.: +43 463 32109 202

Mobil: +43 664 34 13 953

Mag. Michaela Werbitsch

Investor Relations

Tel.: +43 463 32109 204

Mobil: +43 664 811 7662

E-Mail: michaela.werbitsch@sw-umwelttechnik.com

Web: www.sw-umwelttechnik.com

Branche: Technology
ISIN: AT0000808209
WKN: 910497
Index: WBI
Börsen: Berlin / free trade
Frankfurt / free trade
Wien / Regulated free trade