EANS-Adhoc: Mühlbauer Holding AG & Co.KGaA / Mühlbauer ends 2010 with record result - increase of dividend to EUR 1.30 planned

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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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annual report

16.03.2011

Roding, 16 March 2011 - "2010 was an excellent year for Mühlbauer.
Thanks to our technology and market expertise, the concentration of
which is unique worldwide, we were able to convince further
government organizations of our solution competency", commented Josef
Mühlbauer, personally liable shareholder of Mühlbauer. "Sales and
earnings hit historic highs, also due to the global economic recovery
on the industrial markets. At the same time we further reinforced our
market position on our core markets and progressively extended our
solid base through massive investments. We are confident that we will
further raise sales and earnings in 2011 - the year Mühlbauer
celebrates its 30th anniversary."

Sales development. In the 2010 financial year, Mühlbauer raised sales
significantly, to a new record high of EUR 207.5 million. This
corresponds to growth of 29.1% against the value achieved for the
same period of the previous year (PY: EUR 160.8 million). The
realization of further, partly high-volume government projects and
the positive development in the area of industrial card applications
resulted in sales of EUR 126.9 million in the company´s core business
area Cards & TECURITY® and thus to a 12.5% year-on-year increase (PY:
EUR 112.8 million). Semiconductor Related Products again proved to be
the primary driver of the Group's sales development in 2010. As a
result of the high demand for RFID Smart Label and semiconductor
backend solutions, Mühlbauer achieved record sales of EUR 49.7
million (PY: EUR 29.5 million) in this area, corresponding to a sales
increase of 68.8%. The economic recovery in 2010, also had a positive
impact on the remaining two business areas. While sales in
Traceability climbed 58.6%, to EUR 9.2 million (PY: EUR 5.8 million),
Precision Parts & Systems achieved a record high with sales of EUR
21.7 million (PY: EUR 12.7 million), thus exceeding the same period
of the previous year by 70.9%.

Earnings development. In 2010, the earnings situation benefited
strongly from the positive business development. At EUR 38.2 million,
EBIT did not only approximately exceed the previous year´s value of
EUR 9.6 million three-fold. It also recorded a new record high in the
history of the Group. Gross profit, which rose strongly against
sales, at EUR 28.3 million or 52.3%, contributed significantly to
this extremely positive sales development. Also supported by a EUR
0.3 million year-on-year improvement in financial result, the Group
recorded an EBT of EUR 38.6 million (PY: EUR 9.7 million), overall.
This corresponds to a profit margin of 18.6%, after 6.0% in the
previous year. Taking into consideration a slightly lower tax rate,
consolidated net earnings rose by EUR 23.0 million, to EUR 30.3
million (PY: EUR 7.3 million). In relation to individual shares,
earnings totaled EUR 2.09 (PY: EUR 0.50), thus having increased more
than four-fold against the previous year.

Dividend suggestion. Mühlbauer is continuing its stable and
continuity-oriented dividend policy of previous years. The personally
liable shareholder and Supervisory Board therefore intend to propose
to the Annual General Meeting the payment of a 30% higher dividend of
EUR 1.30, after EUR 1.00 in the previous year.

Cashflow. In the year under review, cashflow from operating
activities totaled EUR 47.9 million and was thus EUR 17.7 million
higher year-on-year (PY: EUR 30.2 million). The main reason for this
distinct increase was the record level of net earnings achieved
during the reporting period. This positive development was also
benefited by the decline of working capital, which dropped 23.2%
against the previous year. At EUR 27.9 million, the outflow from
investment activities was 77.7% higher than in the previous year (PY:
EUR 15.7 million). This increase is primarily due to the increased
investments in fixed assets, particularly in the company´s technology
centers in Malaysia, Slovakia and at its headquarters in Roding. Both
the financial and the capital structure of the Mühlbauer Group form a
solid basis for further business development with an adjusted free
cashflow of EUR 25.9 million (PY: EUR 3.3 million), shareholders´
equity of 73.5% (PY: 77.9%) and net liquidity of EUR 38.4 million
(PY: EUR 25.8 million) to the end of 2010.

Order income. Based on a series of further government orders and the
rise in demand in the industry business, which is also due to the
economic recovery, order income rose to EUR 301.6 million during the
reporting period. This not only corresponds to a massive increase of
93.6% against the order income of EUR 155.8 million, achieved in the
same period of the previous year; moreover, with this value,
Mühlbauer achieved the highest order income in the history of the
company. This extremely dynamic development had an equally positive
effect on order backlog, which was 125.5% higher, at EUR 159.9
million, than the previous year´s value of EUR 70.9 million.

Outlook. In future, the possible applications in the industries and
markets relevant to Mühlbauer will continue to gain in importance.
The increasing mobility of people in connection with a rising need
for security and a desire to rationalize their administrative systems
will continue to be the main drivers of governments and public
authorities in paving the way for innovative ID solutions such as
biometric ID cards and ePassports. Furthermore, the number of
applications in the area of contactless identification using RFID
Smart Labels is rising progressively due to the distinct drop in
costs for label production. As developer and manufacturer of the
complete range of hardware and software systems in-house, customers
benefit in a special way from the solution provider´s technology and
market expertise, which has grown over a period of thirty years. As
a result, Mühlbauer considers itself strategically well positioned to
benefit strongly from the potential available on these markets -
thanks to its unique range of services. In the 2010 financial year
the company consistently prepared for the future - through massive
investments - and against this background it maintains its long-term
growth strategy. In the current financial year, the Group is
therefore expecting to achieve a further increase of sales and
earnings against the extremely good previous year and further growth
in the year to come.

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

Further inquiry note:

Ramona Bemmerl
Investor Relations
+49(0)9461-952-1653
ramona.bemmerl@muehlbauer.de

Branche: Machine Manufacturing
ISIN: DE0006627201
WKN: 662720
Index: CDAX, Prime All Share, Technology All Share
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